FINRA Reminds Firms of Options Reporting Requirements (FINRA Reg. Notice 16-17)

FINRA reminded member firms of their obligation under FINRA Rule 2360(b)(5) to report large options positions to the Large Options Positions Reporting (“LOPR”) system. FINRA¬†outlined the options reporting requirements and summarized guidance that was issued previously.

Specifically, the FINRA notice addressed reporting obligations and guidance relating to the reporting of standardized and conventional option positions, the aggregation of accounts and positions, reporting formats and specifications, changes to account information, in-concert reporting, position maintenance records, rejections, and effective supervision practices.

Lofchie Comment: Firms should be aware that much of this reporting can be difficult to complete correctly, particularly when it concerns the aggregation of positions held by accounts under common control.