FINRA Supplement Liquidity Schedule


On Apr. 30, FINRA proposed to adopt supplemental liquidity schedule.


  • FINRA filed proposed rule change to adopt a supplemental liquidity schedule (SLS), proposed instructions, pursuant to FINRA Rule 4524, supplemental FOCUS information.
  • Designed to improve FINRA’s ability to monitor for events that signal an adverse change in the liquidity risk of the members that would be subject to the requirement.
  • Noted Covid market volatility reinforced effective liquidity risk monitoring importance.
  • Followed prior version of proposed SLS, issued for comment Jan. 2018, see #37333.
  • Supplemental Liquidity Schedule
  • Proposed SLS would be filed as a supplement to the FOCUS report, and tailored to apply only to members who hold the largest customer and counterparty exposures.
  • Members subjected to requirements would be required to provide detailed reporting.
  • Reporting required on repurchase agreements, securities loan contracts, bank loans.
  • Unless otherwise permitted by FINRA in writing, the SLS would be required to be filed by each carrying member who has total of $25 million or more in free credit balances.
  • Also, by each members whose total aggregate amount outstanding under repurchase agreements, securities loan contracts, bank loans equal to or greater than $1 billion.
  • Amount based on that reported on the member’s most recently filed FOCUS report.
  • Completed as of last business day of month, filed in 24 business days after month end.
  • Effectiveness
  • Comments must be submitted in 21 days from pending publication in federal register.

Regulators FINRA
Entity Types B/D; Bank; Depo
Reference RF, SR-FINRA-2021-009, 4/30/2021; COVID-19; Citation: FINRA Rule 4524;
Functions Compliance; Financial; Legal; Operations; Reporting; Risk; Treasury
Countries United States of America
Products Deposits; Loan; Repo/Reverse; Securities; Stock Lending
Regions Am
Rule Type Proposed
Rule Date 4/30/2021
Effective Date 5/21/2021
Rule Id 104396
Linked to Rule :37333
Reg. Last Update 4/30/2021
Report Section US Investment

Last substantive update on 05/04/2021