SR-FINRA-2023-011

The Financial Industry Regulatory Authority (FINRA) has published on its website a proposal to „amend“ FINRA Rule 4210 to extend to May 22, 2024 the implementation date of margin requirements on the following security transactions:
(a) To Be Announced (TBA) transactions;
(b) Adjustable rate mortgage (ARM) transactions:
(c) Specified Pool Transactions; and
(d) Collateralized Mortgage Obligations (CMOs).
The imposition of such obligations was originally requested in a corresponding FINRA rule change request SR-FINRA-2015-036 in 2015.
It is important to note that this extension does not affect the risk limit determination obligations of broker-dealers which have already been implemented late 2016 and which were initially part of the same rule change request. The risk limit determination requires members to maintain a written risk analysis methodology for assessing the amount of credit extended to (margin) exempt accounts.
Due to the fact that FINRA has designated the proposed rule change as constituting a “non-controversial” rule change, the changes – upon SEC approval – will come into force on the date of filing with the SEC.