The Financial Industry Regulatory Authority, Inc. (FINRA) is temporarily increasing the maintenance margin requirements for auction rate securities pursuant to NYSE Rule 431(f)(8)(A) and NASD Rule 2520(f)(8)(A). All auction rate securities that are backed by fixed income products (e.g., municipal bonds, collateralized debt obligations, etc.) will have a 25% maintenance requirement effective immediately. The changes were in response to recent events in the marketplace, including failed auctions and illiquidity. The FINRA notice announcing the changes also warned firms “to give careful consideration to the classification of these securities on customer statements as cash or cash equivalents” and encouraged them to “review any references and characterization of these securities on member firms’ Web sites as short term securities.”