FINRA – Margin Balance Reporting: Frequently Asked Questions under FINRA Rule 4521(d)

April 13, 2021 – More information about Rule 4521(d) is introduced in response to inquiries to aid members in reporting obligations under the rule.

Margin Balance Reporting
Rule 4521(d) provided that each member carrying margin accounts for customers is required to submit a report on a settlement date basis, as of the last business day of each month. Required to include the total of all debt balances in secure margin accounts, and the total of all free credit balances in all cash accounts and all securities margin accounts. Balances in short accounts and special memo accounts are not considered free credit balances. Specified that accounts of other FINRA members or associated persons of the member submitting the report not included in the reported credit or credit balance information, where such associated person’s account has been excluded from the definition of the customer pursuant to the securities exchange act (SEA) Rule 15c3-3, under 17 CFR 240.15c3-3. Described what is considered free credit balance in cash and securities margins under the rule. Provided examples of reporting based on several accounts or sub-account scenarios.

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