Exam Alert: FINRA amends short-interest reporting rule

Effective November 30, 2012, FINRA has amended its short-interest reporting rule. The change eliminates three exceptions to the rule for stabilizing activity, domestic arbitrage, and international arbitrage, and codifies/clarifies other provisions. Continue reading

Effective November 30, 2012, FINRA has amended its short-interest reporting rule.  The rule requires that member firms maintain records of short positions in non-restricted equity securities in customer and firm accounts and report the information to FINRA.

The change eliminates three exceptions to the rule for stabilizing activity, domestic arbitrage, and international arbitrage.  Exceptions still remain for certain other situations.

The change also codifies that short positions must be reported for each account on a gross basis (as opposed to a net basis).  The change clarifies that firms are only required to report short sales that have settled or that have reached their settlement date.

Source: FINRA Regulatory Notice 12-38

This alert applies to the Series 24.

Exam Alert: Operations Professionals must pass the Series 99 by October 17

Anyone who was identified by their firm as an Operations Professional as of October 17, 2011, must pass the Series 99 (or other appropriate qualification exam) by October 17, 2012. Those who need to pass the exam should note the 30-day waiting period for retaking the exam. The waiting period increases to 180 days if an individual fails the exam three or more times in succession. Continue reading

Anyone who was identified by their firm as an Operations Professional as of October 17, 2011, must pass the Series 99 (or other appropriate qualification exam) by October 17, 2012.  Those who need to pass the exam should note the 30-day waiting period for retaking the exam.  The waiting period increases to 180 days if an individual fails the exam three or more times in succession.

If an individual fails to pass the Series 99 (or other qualification exam) by October 17, then the individual must stop functioning as an Operations Professional until he or she passes the exam.  FINRA has stated that it will not grant exceptions or waivers to the waiting period rule.

 

Sources:

“Operations Professional Qualification Exam” (FINRA website)

“Qualifications FAQ-Operations Professional” (FINRA website)

NASD Rule 1070, Qualification Examinations and Waiver of Requirements

 

This alert applies to the Series 99.