On December 31, 2024, the Financial Industry Regulatory Authority, Inc. (“FINRA”) issued Regulatory Notice 24-18 (“RN 24-18”) to provide updated guidance to members regarding Rules 15c3-1, 15c3-3 and 17a-5 under the Securities Exchange Act of 1934 (“SEA”), Rule 204 under Regulation SHO, FINRA Rules 4210, 4230(b), 4521 and 4524, and Regulation T of the Federal Reserve Board in the event of an unexpected close of securities markets, such as a national day of mourning declared by the President of the United States.
RN 24-18 follows the death of former President Jimmy Carter on December 29, 2024. As discussed in our previous blog post, pursuant to a proclamation of the current President of the United States on December 30, 2024, January 9, 2025 has been declared a national day of mourning, and the federal government will be closed that day. The New York Stock Exchange (NYSE) and Nasdaq have announced that those exchanges will be closed on January 9, 2025, for equities trading. However, the Depository Trust & Clearing Corporation (DTCC) has announced that it and its subsidiaries will be open on January 9, 2025 to clear and settle securities trades from earlier market activity and to conduct all other normal business activities.
RN 24-18 addresses, among other things, the circumstances under which the day of the unexpected close of securities markets (such as January 9, 2025) should be considered a regular business day versus a non-business day for purposes of certain broker-dealer financial, operational and reporting rules. RN 24-18 updates and replaces the guidance previously set forth in FINRA Regulatory Notice 18-39.
RN 24-18 can be accessed here.