On December 11, the Financial Industry Regulatory Authority proposed a rule change to amend FINRA Rule 2360(b)(5) to reflect the current requirement that reporting rules apply to all accounts acting in concert. FINRA Rule 2360(b)(5) requires FINRA member firms to file, or cause to be filed, reports for any account with 200 or more options contract positions on the same side of the market and covering the same security or index (Large Options Position Reports or LOPRs). Such LOPRs allow FINRA to monitor for position limit compliance and for compliance with other rules and regulations. FINRA had previously issued clarification in the form of Notices to Members that any accounts acting in concert must be reported as such and believes member firms are already in compliance with the requirement. The proposed rule change is intended to harmonize the FINRA rule with options exchange rules that explicitly require in-concert reporting and to ensure continued compliance with the requirement.
Click here to read the proposed rule change.
