October 16, 2021

Volume XI, Number 289

Advertisement
Advertisement

October 15, 2021

Subscribe to Latest Legal News and Analysis

October 14, 2021

Subscribe to Latest Legal News and Analysis
Advertisement

Notice of Filing of a Proposed Rule Change to Adopt a Supplemental Liquidity Schedule

The Securities and Exchange Commission is seeking comments on a Financial Industry Regulatory Authority (FINRA) proposal to adopt a Supplemental Liquidity Schedule (SLS), and instructions thereto, pursuant to FINRA Rule 4524. FINRA Rule 4524 provides in part that each member, as FINRA shall designate, shall file as a supplement to FOCUS Reports such additional financial or operational schedules or reports as FINRA may deem necessary. The proposed SLS, which would be filed as a supplement to the FOCUS Report, would be required to be filed by (1) each carrying member with at least $25 million in free credit balances, as outlined under Securities Exchange Act of 1934 (SEA) Rule 15c3-3(a)(8); and (2) any member with at least $1 billion in aggregate outstanding repurchase agreements, securities loan contracts and bank loans, as reported on their most recent FOCUS Report.

Members that would be subject to the SLS requirement would provide detailed reporting, using the SLS, as to their:

  • reverse repurchase and repurchase agreements;

  • securities borrowed and securities loaned;

  • non-cash reverse repurchase and securities borrowed transactions;

  • non-cash repurchase and securities loaned transactions;

  • bank loan and other committed and uncommitted credit facilities;

  • total available collateral in the member’s custody;

  • margin and non-purpose loans;

  • collateral securing margin loans;

  • deposits at clearing organizations; and

  • cash and securities received and delivered on derivative transactions not cleared through a central clearing counterparty

Comments are due on June 8.

SEC Release No. 34-91876

©2021 Katten Muchin Rosenman LLPNational Law Review, Volume XI, Number 141
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement

About this Author

Susan Light, Katten Law Firm, Finance Law Attorney, New York
Partner

Susan Light focuses her practice on financial services regulatory matters. She counsels broker-dealers, hedge funds, investment banks and financial services clients on enforcement issues involving the Securities and Exchange Commission (SEC), Financial Industry Regulatory Authority (FINRA), other self-regulatory organizations (SROs) and state and federal regulatory authorities. She has particular experience related to sales practice issues, financial and operational issues, anti-money laundering, crowdfunding, cybersecurity, and cryptocurrencies.

...
212-940-8599
Associate

Alexander Kim is an associate in the Financial Markets and Funds practice.

212-940-6535
Advertisement
Advertisement
Advertisement