Self-Regulatory Organization Alert! FINRA Order Approving a Proposed Rule Change to Adopt a Supplemental Liquidity Schedule, and Instructions Thereto, Pursuant to FINRA Rule 4524 (Supplemental FOCUS Information) (Release No. 34-92561; File No. SR-FINRA-20
FINRA: Order Approving a Proposed Rule Change to Adopt a Supplemental Liquidity Schedule, and Instructions Thereto, Pursuant to FINRA Rule 4524 (Supplemental FOCUS Information) (Release No. 34-92561; File No. SR-FINRA-2021-009)
https://www.sec.gov/rules/sro/finra/2021/34-92561.pdf
tl:dr of section: This was already punted once for comment, but the commission has what it needs now and is approving the rule change.
tl:dr of section: FINRA names information they are going to require collected (total available collateral in the memberโs custody, margin and non-purpose loans, collateral securing margin loans, etc.) of any member with $25 million or more in free credit balances and each member whose aggregate amount outstanding under repurchase agreements, securities loan contracts and bank loans is equal to or greater than $1 billion, as reported on the memberโs most recently filed FOCUS report, as required to file the SLS and provide this information. Oh, this is on a monthly basis now...
tl:dr - we have to get extra personal with the information collection because we realize your balance sheets are lies and the storm is coming...
tl:dr of section: 85-100 broker-dealers comprise this universe they are super concerned about liquidity for in a 'stress event'...
TL:DR - New reporting rule on collecting information about total available collateral in the memberโs custody, margin and non-purpose loans, collateral securing margin loans, etc. for 85-100 broker-dealers FINRA is decidedly worried about in a liquidity stress event...
