SEC Designates FINRA As Organization To Receive SBS Entity FOCUS Reports

The SEC designated FINRA as the organization to which all security-based swap dealers ("SBSDs") (including non-broker-dealer SBSDs) and major security-based swap participants (collectively, "security-based swap entities" or "SBSEs") must file their respective Form X-17a-5 reports ("FOCUS Reports").

The SEC stated that FOCUS Reports, which are reports used to submit financial and operational information, should be filed with FINRA, since it is equipped to handle such reports from stand-alone SBSEs and bank SBSEs. According to the SEC, FINRA is able to (i) offer a "consolidated platform" for stand-alone SBSEs and bank SBSEs to file FOCUS Reports, (ii) facilitate services necessary for such filings and (iii) subsequently transfer data from the FOCUS Reports to the SEC.