MARGIN

General

Margin Interpretation Updates

FINRA Rule 4210 (Margin Requirements) specifies the margin requirements applicable to securities held in margin accounts, including both strategy-based margin accounts and portfolio margin accounts. FINRA maintains interpretations
regarding FINRA Rule 4210, available on the Interpretations of FINRA’s Margin Rule webpage, in a portable digital format (PDF) document where the interpretations immediately follow the section of the rule to which they relate. This Notice clarifies and updates the interpretations regarding minimum equity requirements.

FINRA Regulatory Notice 21-24 (July 6, 2021): FINRA Announces Updates to the Interpretations of FINRA’s Margin Rule Regarding Minimum Equity

Margin Interpretation Updates

FINRA Rule 4210 (Margin Requirements) specifies the margin requirements applicable to securities held in margin accounts, including both strategy-based margin accounts and portfolio margin accounts. FINRA maintains interpretations regarding FINRA Rule 4210, available on the Interpretations of FINRA’s Margin Rule webpage, in a portable digital format (PDF) document where the interpretations immediately follow the section of the rule to which they relate. This Notice clarifies and updates the interpretations as discussed below.

FINRA Regulatory Notice 21-13 (March 24, 2021): FINRA Announces Updates to the Interpretations of FINRA’s Margin Rule for Day Trading

 

Margin Interpretation Updates

FINRA Rule 4210 (Margin Requirements) prescribes requirements governing the extension of credit by members. The FINRA Rule 4210 interpretations provide further guidance regarding application of the rule. This Notice announced immediately effective clarifications of interpretations of (1) FINRA Rule 4210(e)(8), which specifies margin requirements for control and restricted securities, and (2) FINRA Rule 4210(f)(5), which specifies conditions for the consolidation of two or more accounts carried for the same customer.

FINRA Regulatory Notice 20-22 (July 2, 2020): Updates to Interpretations of FINRA’s Margin Rule Regarding Control and Restricted Securities and Consolidation of Accounts