MARGIN

General

Covered Agency Transactions

In June 2016 the SEC approved an amendment to FINRA Rule 4210 to establish margin requirements for Covered Agency Transactions. Covered Agency Transactions include (1) To Be Announced transactions, inclusive of adjustable rate mortgage transactions, (2) Specified Pool Transactions and (3) transactions in Collateralized Mortgage Obligations, issued in conformity with a program of an agency or Government-Sponsored Enterprise, with forward settlement dates, as discussed more fully in Regulatory Notice 16-31. To assist members in complying with the rule change, FINRA has made available a set of frequently asked questions and guidance. In addition, FINRA is extending, to March 25, 2019, the effective date of the requirements that otherwise would have become effective on June 25, 2018. Members should note that the risk limit determination requirements became effective on December 15, 2016, and are not affected by this Notice.

FINRA Regulatory Notice 18-18 (May 2018): FINRA Extends Effective Date of Margin Requirements for Covered Agency Transactions

• FINRA Regulatory Notice 17-28 (September, 2017):  FINRA Makes Available Frequently Asked Questions and Guidance and Extends Effective Date of Margin Requirements for Covered Agency Transactions

• Responses to Frequently Asked Questions Regarding Covered Agency Transactions Under FINRA Rule 4210 (Updated September 26, 2017) 

FINRA Regulatory Notice 16-31 (August 2016):  SEC Approves Amendments to FINRA Rule 4210 (Margin Requirements) to Establish Margin Requirements for Covered Agency Transactions

 

FINRA Topic Page:  Margin Accounts and Requirements