April 23, 2019

April 23, 2019

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April 22, 2019

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FINRA Regulatory notices: Auction Transactions and Supplemental Statement of Income

FINRA Issues Notice Related to Reporting Requirements for Auction Transactions

On January 9, the Financial Industry Regulatory Authority issued a Notice to remind its members that they should not report auction transactions in US Treasury securities—including auction awards to either direct or indirect bidders—to the Trade Reporting and Compliance Engine (TRACE), as these transactions are excluded from the TRACE reporting requirements under FINRA Rule 6730(e)(8). Similarly, the delivery of securities after the auction by a FINRA member to the indirect bidder that represents an auction award also should not be reported to TRACE. FINRA advises that members that have erroneously reported such auction transactions must promptly cancel or reverse those transactions reports.

FINRA Issues Regulatory Notice Regarding Updates to Supplemental Statement of Income

On January 8, the Financial Industry Regulatory Authority issued a Notice advising its members of updates to the Supplemental Statement of Income (SSOI). The updates are designed to conform with amendments adopted by the Securities and Exchange Commission that simplify and update certain FOCUS reporting requirements applicable to broker-dealers. Pursuant to FINRA Rule 4524, the SSOI must be filed by all FINRA members to supplement the FOCUS Report. The SSOI must be filed within 20 business days at the end of each calendar quarter. The updated SSOI applies beginning with all SSOI filings that report on the period January 1 through March 31, and are due by April 26.

The Notice is available here.

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About this Author

Michael T. Foley, Katten, Lawyer, Finance, FINRA, Chicago
Special Counsel

Michael Foley represents broker-dealers, investment advisers and other financial services industry participants with respect to a broad spectrum of legal and regulatory matters arising under the federal securities laws.

Michael has nearly 20 years of experience in private practice and in-house at both a large, full-service broker-dealer and at an online discount broker-dealer, advising broker-dealers and other financial institutions regarding compliance with the federal securities and commodities laws, and with the regulations of the US Securities and Exchange...

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Associate

Leonard Licht is an associate in the Financial Services practice. He advises a broad range of financial market participants, including investment managers to private funds and investors in private funds. Prior to joining Katten, Lenny practiced as a corporate and securities attorney and has also worked in an analytical capacity with a family office.

While in law school, Lenny was a Heyman scholar and member of the Moot Court Honor Society.

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