FICC Important Notice: Fines For Failure to Submit Required Reports and Information

FICC is reminding members that pursuant to the rules of both the Government Securities Division (Rule 2) and the Mortgage-Backed Securities Division (Rule 1 of Article III) there is a fine schedule currently in effect for failures to timely submit required financial reports and information to FICC. The applicable fine schedule and submission deadlines are attached to this notice. Fines imposed by FICC will be subsequently reported to the Securities and Exchange Commission. Members are urged to review the attached submission deadlines and incorporate them into their internal procedures in order to avoid the applicable fines.

Please note that, in addition to the above, members continue to remain subject to all applicable requirements, and penalties for violations thereof, that are currently in effect under the rules of the respective divisions. The rules of both divisions may be obtained by visiting FICC’s website at www.ficc.com.

Questions or inquiries regarding this important notice should be addressed to Marc Golin, Vice President, at (212) 855-7640, or Tom Fay, Senior Compliance & Surveillance Manager, at (212) 855-7637.

Request For Information*

First

Occasion

Second

Occasion

Third

Occasion

Fourth

Occasion

Financial Reports **

$300

$600

$1,500

***

* Fines to be levied for offenses within a moving twelve-month period beginning with the first occasion.

** For purposes of this Fine Schedule, “Financial Reports” shall mean the financial and regulatory information required to be submitted to the Corporation pursuant to Sections 5 and 6 of Rule 2 of the GSD and Sections 10 and 12 of Rule 1 of Article III of the MBSD.

Type of FICC/GSD Netting Member

Required Report/Information

Due Date for Receipt by FICC[1]

Domestic Netting Members

All domestic netting members

Annual audited financial statements

100 calendar days after the fiscal year-end, except for SEC-registered brokers or dealers whose due date is 70 calendar days after the fiscal year-end

U.S. broker or dealer registered under Section 15 or 15C of the Securities Exchange Act of 1934

FOCUS or FOGS reports, or regulatory extension letter

and

Supplemental report required to be filed pursuant to SEC Rule 17a-11 or 17 C.F.R. Sec. 405.3

20 business days after the month-end or quarter-end

Submitted concurrently with submission to the SEC

Domestic bank or trust company with domestic offices only

Call Report and certain capital level and ratio information if not contained within the Call Report

35 calendar days after the quarter-end

Domestic bank or trust company with domestic and non-domestic offices

Call Report and certain capital level and ratio information if not contained within the Call Report

50 calendar days after the quarter-end

U.S. futures commission merchant that is not a broker or dealer registered with the SEC

CFTC Form 1-FR (or equivalent form filed with the CFTC) and copy of computation required by CFTC Regulation 1.18, or regulatory extension letter

and

Supplemental report required to be filed pursuant to CFTC Regulation 1.12

20 business days after the month-end or quarter-end

Submitted concurrently with submission to the CFTC

Insurance companies

Reports filed with and/or filed in accordance with guidelines issued by, the National Association of Insurance Commissioners (“NAIC”) or other regulatory authority

5 business days after submission to the NAIC and/or other regulator(s)

Domestic netting member that is not a type of entity specified above

Unaudited quarterly financial information

50 calendar days after the quarter-end

All netting members other than SEC–registered brokers and dealers

A copy of any regulatory notification required to be made when a member’s capital levels or other financial requirements fall below prescribed levels

Submitted concurrently with submission to the applicable regulator

Netting members with guarantor

Same as above for the guarantor, as applicable

Non-Domestic Netting Members

All non-domestic netting members

Annual audited financial statements

_______________

Upon approval of FICC rule filing SR-FICC-2004-14, a copy of any regulatory notification required to be made when a member does not comply with the financial reporting and responsibility standards set by its home country regulator

_______________

Upon approval of rule filing SR-FICC-2004-14, notice in writing that the member has become subject to a disciplinary action by its home country regulator

6 months after the fiscal year-end

_______________

Submitted concurrently with submission to the home country regulator

_______________

Within 2 business days of becoming subject to the disciplinary action

Broker or dealer established or organized in the United Kingdom

Upon approval of FICC rule filing SR-FICC-2004-14,

Financial Services Authority monthly report

20 business days after the month-end

Bank established or organized in the United Kingdom

Upon approval of FICC rule filing SR-FICC-2004-14, Form BSD3

50 calendar days after the quarter-end

Non-domestic netting member, other than a UK broker, a UK dealer or a UK bank

Currently—

quarterly report and information specified in Schedule I of the Foreign Netting Member Agreement

and

Semi-annual unaudited financial statements

___________

Upon approval of rule filing SR-FICC-2004-14, a completed form requesting key financial information—form provided by FICC

75 calendar days after the end of each fiscal quarter

6 months after the end of the fiscal period

____________

Due date specified in FICC form

All netting members other than SEC–registered brokers and dealers

A copy of any regulatory notification required to be made when a member’s capital levels or other financial requirements fall below prescribed levels

Submitted concurrently with submission to the applicable regulator

Netting members with parent guaranty

Same as above for the guarantor, as applicable

Type of FICC/MBSD Clearing Participant

Required Report/Information

Due Date for Receipt by FICC[2]

Domestic Clearing Participants

All domestic clearing participants

Annual audited financial statements

100 calendar days after the fiscal year-end, except for SEC-registered brokers or dealers whose due date is 70 calendar days after the fiscal year-end

U.S. broker or dealer registered under Section 15 or 15C of the Securities Exchange Act of 1934

FOCUS or FOGS reports, or regulatory extension letter

and

Supplemental report required to be filed pursuant to SEC Rule 17a-11 or 17 C.F.R. Sec. 405.3

20 business days after the month-end or quarter-end

Submitted concurrently with submission to the SEC

Domestic bank or trust company with domestic offices only

Call Report and certain capital level and ratio information if not contained within the Call Report

35 calendar days after the quarter-end

Domestic bank or trust company with domestic and non-domestic offices

Call Report and certain capital level and ratio information if not contained within the Call Report

50 calendar days after the quarter-end

Domestic clearing member that is not a type of entity specified above

If regulated, unaudited quarterly financial information

If unregulated, monthly unaudited financial information

50 calendar days after the quarter-end

20 business days after the month-end

All clearing participants other than SEC–registered brokers and dealers

A copy of any regulatory notification required to be made when a member’s capital levels or other financial requirements fall below prescribed levels

Submitted concurrently with submission to the applicable regulator

Clearing participants with parent guaranty

Same as above for the guarantor, as applicable

Non-Domestic Clearing Participants

All non-domestic clearing participants

Annual audited financial statements

_______________

Upon approval of FICC rule filing SR-FICC-2004-14, a copy of any regulatory notification required to be made when a participant does not comply with the financial reporting and responsibility standards set by its home country regulator

_______________

Upon approval of rule filing SR-FICC-2004-14, notice in writing that the participant has become subject to a disciplinary action by its home country regulator

6 months after the fiscal year-end

_______________

Submitted concurrently with submission to the home country regulator

_______________

Within 2 business days of becoming subject to the disciplinary action

Broker or dealer established or organized in the United Kingdom

Upon approval of FICC rule filing SR-FICC-2004-14,

Financial Services Authority monthly report

20 business days after the month-end

Bank established or organized in the United Kingdom

Upon approval of FICC rule filing SR-FICC-2004-14, Form BSD3

50 calendar days after the quarter-end

Non-Domestic clearing participant, other than a UK broker, a UK dealer or a UK bank

Currently, monthly unaudited financial information

_______________

Upon approval of rule filing SR-FICC-2004-14, a completed form requesting key financial information- form to be provided by FICC

20 business days after month-end

_______________

Due date specified in form

All clearing participants other than SEC–registered brokers and dealers

A copy of any regulatory notification required to be made when a member’s capital levels or other financial requirements fall below prescribed levels

Submitted concurrently with submission to the applicable regulator

Clearing participants with parent guaranty

Same as above for the guarantor, as applicable

[1] In all cases where a due date falls on a day that is not a business day, the due date shall be deemed to be the first business day immediately thereafter.

[2] In all cases where a due date falls on a day that is not a business day, the due date shall be deemed to be the first business day immediately thereafter.