1. Trade Reporting and OATS Rules.
2. Fidelity Bonds.
3. FINRA Rulebook Cross-References.
4. Margin for Credit Default Swaps.
5. ADF Quotation Requirements.
6. TRACE Reporting for Church Bonds.

    1.  Trade Reporting and OATS Rules.   On 2/26/10, the SEC adopted changes to Reg. SHO with a compliance date of 11/10/10;  the compliance date was pushed back to 2/28/11.  FINRA's currently effective amendments to its trade reporting and OATS rules, consistent with the new requirements of Reg. SHO, will now be implemented with the new compliance date of SEC Regulation SHO.   [Rule Filing 10-58, 11/5]

    2.  Fidelity Bonds.   FINRA proposed new FINRA Rule 4360, Fidelity Bonds, that in large part is based on NASD Rule 3020, taking into account Incorp'd NYSE Rule 319 and its interpretation.  NASD Rule 3020 and NYSE Rule 319 (and its Interpretation) generally require members to maintain minimum amounts of fidelity bond coverage for officers and employees, and that such  coverage address losses incurred due to certain specified events.  The purpose of a fidelity bond is to protect a member against certain types of losses, including, but not limited to, those caused by the malfeasance of its officers and employees, and the effect of such losses on the member’s capital.  For further details, refer to:   [Rule Filing 10-59, 11/10]

    3.  FINRA Rulebook Cross-References.   FINRA filed for immediate effectiveness updated cross-references within certain FINRA rules to reflect changes adopted in the consolidated FINRA rulebook and to make non-substantive technical changes to certain FINRA Rules.  [Rule Filing 10-60, 11/10]

    4.  Margin for Credit Default Swaps.   FINRA filed for immediate effectiveness to push back implementation of FINRA Rule 4240, Margin Requirements for Credit Default Swaps, until 7/16/11.  The rule implements an interim pilot program with respect to margin requirements for transactions in credit default swaps (CDS's) executed by a member - regardless of the type of account in which transaction is booked - including those in which the offsetting matching hedging transactions are effected by the member in CDS contracts that are cleared through the central counterparty clearing services of the CME.  [Rule Filing 10-63, 11/22]

    5.  ADF Quotation Requirements.   Yesterday, 12/6, amendments to FINRA Rule 6272 went into effect as proposed in Rule Filing 10-49.  The rule change enhances quotation requirements on the Alternative Display Facility.  [ADF Announcement, 11/19]

    6.  TRACE Reporting for Church Bonds.   Effective 12/1, FINRA established a unique identifier for a class of TRACE-eligible securities commonly known as "Church Bonds," in cases where such bonds don't have an S&P-assigned CUSIP.  Effective tomorrow, 12/8, FINRA will add about 400 securities with the FINRA identifier to the TRACE Issue Master.  Use of the identifier enables TRACE reporting of transactions in these securities.  Please note that Church Bonds that have an assigned S&P CUSIP number should be reported to TRACE using the CUSIP number or the corresponding TRACE Symbol.  [TRACE Announcements, 11/23, 12/7]