FINRA

How FINRA Is Streamlining Data Requests

FINRA’s latest initiative focuses on streamlining data requests to improve oversight while reducing the compliance burden on member firms. Under the FINRA Forward agenda, senior leaders Sam Dradi and Jay Koutros explained how the regulator is shifting from broad, formal 8210 subpoenas to more precise, data‑driven inquiries that leverage internal analytics before reaching out to firms. Key changes include a dramatic cut in formal requests, a risk‑based approach to blotter collection, and the deployment of advanced analytics platforms—many powered by generative AI and natural‑language processing. Cross‑departmental data silos have been dismantled, allowing surveillance, examinations, and enforcement teams to share insights in real time, which shortens exam preparation timelines and reduces redundant data pulls. Dradi described data as the “DNA” of FINRA’s investigations, noting that internal dashboards now surface suspicious activity without external data pulls. Koutros highlighted member‑firm feedback that praised the move toward fewer, less formal requests, and cited the shift from an 85‑90% blanket blotter request rate to a targeted, model‑based selection process as a concrete example of the new methodology. The overhaul promises a more efficient regulator, lower operational costs for firms, and stronger investor protection. By consolidating analytics and breaking down internal silos, FINRA aims to act faster on market abuse while embodying the “one FINRA” vision of unified regulatory operations.