Financial Industry Regulatory Authority member firms that are futures commission merchants and clear over-the-counter (OTC) derivatives for customers through Chicago Mercantile Exchange Inc. (CME) must soon begin filing a new statement pertaining to such OTC derivatives with FINRA as part of their monthly Financial and Operational Combined Uniform Single (FOCUS) Report. This requirement arises from recent amendments by CME to its financial reporting rules and forms and by National Futures Association to its financial requirement rules. The new statement—the Statement of Sequestration Requirements and Funds in Cleared OTC Derivatives Sequestered Accounts—is due to FINRA beginning with the monthly FOCUS Report that is due on November 23 (covering the October 2010 reporting period).  

Click here to read FINRA Regulatory Notice 10-46.