FINRA – Information Notice – Redesigned eFOCUS System and SEC Security-Based Swap Reporting Requirements, and Revised Supplemental Inventory Schedule

June 3, 2021

In 2019, the SEC adopted revisions to certain Financial and Operational Combined Uniform Single (FOCUS) reporting and annual report requirements that apply to Broker-Dealers The amendments take account of broker-dealer security-based swap (SBS) activity. As result, FINRA revised the Supplemental Inventory Schedule (SIS), so that members filing new FOCUS Report Part II, as per SEC changes, will no longer need to file SIS.

Impact on Financial Reporting
The SEC’s FOCUS amendments elicit more detailed data related to derivatives positions and exposures. Members currently filing FOCUS Report Part II will file amended FOCUS Report Part II.

The FOCUS Report Part II CSE will be discontinued, and firms that currently file FOCUS Report Part II CSE will instead file amended FOCUS Report Part II. Schedule 1 (aggregate securities, commodities, and swaps positions) of FOCUS Report Part II, as amended, elicits substantially all information that the current SIS requires.

To avoid duplication, members filing amended FOCUS Report Part II need not file SIS. SEC updated Facing Page and Oath or Affirmation (Part III of Form X-17A-5), which members submit with their annual reports pursuant to Rule 17a-5, 17 CFR 240.17a-5. All members will use the amended Facing Page and FOCUS Report Part IIA is unchanged.

FINRA Redesigned EFOCUS System
FINRA has redesigned its eFOCUS filing system to improve the member filing experience. Quarterly filers may access the new system on FINRA Gateway starting June 24, 2021. The new system will be made available to monthly filers beginning in July 2021.

SEC new FOCUS reporting requirements, and revised SIS, will apply beginning with reports on period ending October 31, 2021, and are required to be filed in November 2021.

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