How FINRA Is Streamlining Data Requests

Why It Matters

Streamlined data requests lower compliance costs for firms and enable FINRA to detect market abuse more quickly, strengthening overall market integrity and investor confidence.

Key Takeaways

• FINRA reduces formal 8210 data requests, focusing on targeted inquiries.
• Cross‑departmental data sharing cuts exam prep time and firm burden.
• New analytics tools, including Gen AI, enhance internal surveillance capabilities.
• FINRA Forward drives continuous improvement and regulatory efficiency initiatives.
• Streamlined processes aim to protect investors while easing compliance costs.

Summary

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.

Original Description

Data is at the heart of everything we do at FINRA—from examining firms to detecting suspicious trading to protecting investors. But the process of requesting, gathering, and analyzing data involves significant effort across the board.

So, the question is: How do we work smarter? How do we use technology and collaboration to be more targeted in what we ask for, more efficient in how we use it, and more effective in the oversight we provide?

On this episode, Sam Draddy, Senior Vice President of Surveillance and Market Intelligence, and J. Koutros, Senior Vice President of Member Supervision Operations, Procedures, and Standards, explore how FINRA's approach to data requests is evolving. This effort embodies FINRA Forward (https://www.finra.org/about/finra-forward?utm_source=fun&utm_medium=pod&utm_campaign=ff&utm_content=marchfun26) , our commitment to continuous improvement, regulatory efficiency, and reducing burden while strengthening investor protection and market integrity.

Resources mentioned in this episode:

FINRA Rule 8210 (https://www.finra.org/rules-guidance/rulebooks/finra-rules/8210?utm_source=fun&utm_medium=pod&utm_content=marchfun26)

Electronic Blue Sheets (EBS) (https://www.finra.org/filing-reporting/electronic-blue-sheets-ebs?utm_source=fun&utm_medium=pod&utm_content=marchfun26)

FINRA Quarterly Regulatory Policy Agenda (https://www.finra.org/rules-guidance/rulemaking-process/regulatory-policy-agenda?utm_source=fun&utm_medium=pod&utm_content=marchfun26)

FINRA Forward (https://www.finra.org/about/finra-forward?utm_source=fun&utm_medium=pod&utm_campaign=ff&utm_content=marchfun26)

Blog Post: FINRA Forward’s Rule Modernization—An Update (https://www.finra.org/media-center/blog/finra-forward-rule-modernization-update?utm_source=fun&utm_medium=pod&utm_campaign=ff&utm_content=marchfun26)

Blog Post: Vendors, Intelligence Sharing and FINRA’s Mission (https://www.finra.org/media-center/blog/vendors-intelligence-sharing-and-finras-mission?utm_source=fun&utm_medium=pod&utm_campaign=ff&utm_content=marchfun26)

Blog Post: FINRA Forward Initiatives to Support Members, Markets and the Investors They Serve (https://www.finra.org/media-center/blog/new-finra-initiatives-support-members-markets-and-investors-they-serve?utm_source=fun&utm_medium=pod&utm_campaign=ff&utm_content=marchfun26)

Blog Post: A Progress Update on Rule Modernization (https://www.finra.org/media-center/blog/a-progress-update-on-rule-modernization?utm_source=fun&utm_medium=pod&utm_campaign=ff&utm_content=marchfun26)

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