UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM N-Q

             QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
                         MANAGEMENT INVESTMENT COMPANY

                  Investment Company Act file number 811-22039
                                                    -----------

           First Trust Specialty Finance and Financial Opportunities
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            Fund (Exact name of registrant as specified in charter)

                       120 East Liberty Drive, Suite 400
                               Wheaton, IL 60187
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              (Address of principal executive offices) (Zip code)

                             W. Scott Jardine, Esq.

                          First Trust Portfolios L.P.
                       120 East Liberty Drive, Suite 400
                               Wheaton, IL 60187
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                    (Name and address of agent for service)

        Registrant's telephone number, including area code: 630-765-8000
                                                           --------------

                      Date of fiscal year end: November 30
                                              -------------

                  Date of reporting period: February 28, 2014
                                           -------------------

Form N-Q is to be used by management investment companies, other than small
business investment companies registered on Form N-5 (ss.ss. 239.24 and 274.5 of
this chapter), to file reports with the Commission, not later than 60 days after
the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under
the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use
the information provided on Form N-Q in its regulatory, disclosure review,
inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-Q, and
the Commission will make this information public. A registrant is not required
to respond to the collection of information contained in Form N-Q unless the
Form displays a currently valid Office of Management and Budget ("OMB") control
number. Please direct comments concerning the accuracy of the information
collection burden estimate and any suggestions for reducing the burden to the
Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC
20549. The OMB has reviewed this collection of information under the clearance
requirements of 44 U.S.C. ss. 3507.



ITEM 1. SCHEDULE OF INVESTMENTS. The Schedule(s) of Investments is attached
herewith.


FIRST TRUST SPECIALTY FINANCE AND FINANCIAL OPPORTUNITIES FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
FEBRUARY 28,2014 (UNAUDITED)




    SHARES                                   DESCRIPTION                                        VALUE
---------------  --------------------------------------------------------------------     ----------------
COMMON STOCKS - BUSINESS DEVELOPMENT COMPANIES - 99.9%

                                                                                    
                 CAPITAL MARKETS - 99.9%
        169,032  American Capital Ltd. (b)...........................................     $      2,630,138
         10,000  American Capital Senior Floating Ltd. ..............................              146,200
        440,608  Apollo Investment Corp. (a).........................................            3,771,604
        774,552  Ares Capital Corp. (a)..............................................           13,965,173
        214,420  BlackRock Kelso Capital Corp. (a)...................................            2,043,423
         20,000  CM Finance, Inc ....................................................              310,400
          6,964  Fidus Investment Corp. .............................................              146,174
         90,594  Fifth Street Finance Corp. (a)......................................              889,633
         50,000  Full Circle Capital Corp. ..........................................              407,500
        314,304  Gladstone Capital Corp. (a).........................................            3,139,897
        183,333  Gladstone Investment Corp. (a)......................................            1,495,997
        517,240  Golub Capital BDC, Inc. (a).........................................            9,703,422
          8,699  Harvest Capital Credit Corp. .......................................              132,660
        463,198  Hercules Technology Growth Capital, Inc. (a)........................            7,290,737
        222,697  Horizon Technology Finance Corp. (a)................................            3,244,695
        340,472  KCAP Financial, Inc. (a)............................................            2,795,275
         38,798  Main Street Capital Corp. (a).......................................            1,361,810
        444,100  MCG Capital Corp. (a)...............................................            1,958,481
        250,353  Medallion Financial Corp. (a).......................................            3,640,133
        545,561  Medley Capital Corp. (a)............................................            7,659,676
          5,000  Monroe Capital Corp. ...............................................               66,250
        244,496  MVC Capital, Inc. (a)...............................................            3,550,082
        384,861  New Mountain Finance Corp. (a)......................................            5,780,612
        333,937  NGP Capital Resources Co. (a).......................................            2,524,564
        134,390  OFS Capital Corp. (a)...............................................            1,724,224
        160,965  PennantPark Floating Rate Capital Ltd. (a)..........................            2,287,313
        680,573  PennantPark Investment Corp. (a)....................................            7,785,755
         14,936  Saratoga Investment Corp. ..........................................              236,736
        290,709  Solar Capital Ltd. (a)..............................................            6,459,554
         55,050  Solar Senior Capital Ltd. (a).......................................            1,007,965
        125,026  Stellus Capital Investment Corp. (a)................................            1,832,881
        392,728  TCP Capital Corp. (a)...............................................            6,943,431
        509,618  THL Credit, Inc. (a)................................................            8,067,253
        104,903  TICC Capital Corp. (a)..............................................            1,090,991
        176,601  Triangle Capital Corp. (a)..........................................            4,964,254

                                                                                          ----------------
                 TOTAL COMMON STOCKS - BUSINESS DEVELOPMENT COMPANIES.............             121,054,893
                 (Cost $114,760,507)                                                      ----------------


COMMON STOCKS - 16.3%

                 CAPITAL MARKETS - 4.2%
         97,467  Safeguard Scientifics, Inc. (b).....................................            1,911,328
        127,000  Stonecastle Financial Corp. ........................................            3,173,730
                                                                                          ----------------
                                                                                                 5,085,058
                                                                                          ----------------


                See Notes to Quarterly Portfolio of Investments           Page 1



FIRST TRUST SPECIALTY FINANCE AND FINANCIAL OPPORTUNITIES FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
FEBRUARY 28,2014 (UNAUDITED)



 SHARES/UNITS                                DESCRIPTION                                       VALUE
---------------  --------------------------------------------------------------------     ----------------
COMMON STOCKS (CONTINUED)

                                                                                    
                 REAL ESTATE INVESTMENT TRUSTS - 12.1%
        367,500  Annaly Capital Management, Inc. (a).................................     $      4,108,650
         20,000  Ares Commercial Real Estate Corp. ..................................              271,800
        696,880  CYS Investments, Inc. (a)...........................................            6,132,544
         20,000  Gladstone Commercial Corp. .........................................              348,000
        194,282  Hatteras Financial Corp. (a)........................................            3,831,241
                                                                                          ----------------
                                                                                                14,692,235
                                                                                          ----------------
                 TOTAL COMMON STOCKS ................................................           19,777,293
                 (Cost $24,017,467)                                                       ----------------


MASTER LIMITED PARTNERSHIPS - 3.1%

                 DIVERSIFIED FINANCIAL SERVICES - 3.1%
        199,092  Compass Diversified Holdings (a)....................................            3,730,984
                                                                                          ----------------
                 TOTAL MASTER LIMITED PARTNERSHIPS ..................................            3,730,984
                 (Cost $808,454)                                                          ----------------


EXCHANGE-TRADED FUNDS - 0.5%

                 DIVERSIFIED FINANCIAL SERVICES - 0.5%
         15,000  SPDR Barclays High Yield Bond ETF ..................................              622,950
                                                                                          ----------------
                 TOTAL EXCHANGE-TRADED FUNDS ........................................              622,950
                 (Cost $532,814)                                                          ----------------

                 TOTAL INVESTMENTS - 119.8% .........................................          145,186,120
                 (Cost $140,119,242)       (c)

                 OUTSTANDING LOAN - (20.6%) .........................................          (25,000,000)

                 NET OTHER ASSETS AND LIABILITIES - 0.8% ............................              939,899
                                                                                          ----------------
                 NET ASSETS - 100.0% ................................................     $    121,126,019
                                                                                          ================



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(a)   All or a portion of this security serves as collateral on the outstanding
      loan.

(b)   Non-income producing security.

(c)   Aggregate cost for financial reporting purposes, which approximates the
      aggregate cost for federal income tax purposes. As of February 28, 2014,
      the aggregate gross unrealized appreciation for all securities in which
      there was an excess of value over tax cost was $21,739,034 and the
      aggregate gross unrealized depreciation for all securities in which there
      was an excess of tax cost over value was $16,672,156.


Page 2          See Notes to Quarterly Portfolio of Investments



FIRST TRUST SPECIALTY FINANCE AND FINANCIAL OPPORTUNITIES FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
FEBRUARY 28,2014 (UNAUDITED)

---------------------------------------

VALUATION INPUTS

A summary of the inputs used to value the Fund's investments as of February 28,
2014 is as follows (see Note 2A - Portfolio Valuation in the Notes to Quarterly
Portfolio of Investments):





                                                                                          LEVEL 2         LEVEL 3
                                                           TOTAL          LEVEL 1       SIGNIFICANT     SIGNIFICANT
                                                         VALUE AT         QUOTED        OBSERVABLE      UNOBSERVABLE
INVESTMENTS                                              2/28/2014        PRICES          INPUTS           INPUTS
--------------------------------------------------    ---------------  -------------  ---------------  --------------
                                                                                           
Common Stocks - Business Development
  Companies*......................................    $   121,054,893  $ 121,054,893  $            --  $           --
Common Stocks*....................................         19,777,293     19,777,293               --              --
Master Limited Partnerships*......................          3,730,984      3,730,984               --              --
Exchange-Traded Funds*............................            622,950        622,950               --              --
                                                      ---------------  -------------  ---------------  --------------
Total Investments.................................    $   145,186,120  $ 145,186,120  $            --  $           --
                                                      ===============  =============  ===============  ==============



* See Portfolio of Investments for industry breakout.


All transfers in and out of the Levels during the period are assumed to be
transferred on the last day of the period at their current value. There were no
transfers between levels at February 28, 2014.

                See Notes to Quarterly Portfolio of Investments           Page 3




NOTES TO QUARTERLY PORTFOLIO OF INVESTMENTS

      FIRST TRUST SPECIALTY FINANCE AND FINANCIAL OPPORTUNITIES FUND(FGB)
                         FEBRUARY 28, 2014 (UNAUDITED)


                                1. ORGANIZATION

First Trust Specialty Finance and Financial Opportunities Fund (the "Fund") is a
non-diversified, closed-end management investment company organized as a
Massachusetts business trust on March 20, 2007, and is registered with the
Securities and Exchange Commission under the Investment Company Act of 1940, as
amended (the "1940 Act"). The Fund trades under the ticker symbol FGB on the New
York Stock Exchange ("NYSE").

                     2. VALUATION AND INVESTMENT PRACTICES

A. PORTFOLIO VALUATION:

The net asset value ("NAV") of the Common Shares of the Fund is determined daily
as of the close of regular trading on the NYSE, normally 4:00 p.m. Eastern time,
on each day the NYSE is open for trading. If the NYSE closes early on a
valuation day, the NAV is determined as of that time. Domestic debt securities
and foreign securities are priced using data reflecting the earlier closing of
the principal markets for those securities. The NAV per Common Share is
calculated by dividing the value of all assets of the Fund (including accrued
interest and dividends), less all liabilities (including accrued expenses,
dividends declared but unpaid, and any borrowings of the Fund) by the total
number of Common Shares outstanding.

The Fund's investments are valued daily at market value, or in absence of market
value with respect to any portfolio securities, at fair value in accordance with
valuation procedures adopted by the Fund's Board of Trustees, and in accordance
with provisions of the 1940 Act. Market quotations and prices used to value the
Fund's investments are primarily obtained from third party pricing services. The
Fund's investments are valued as follows:

      Common stocks, master limited partnerships and other securities listed on
      any national or foreign exchange (excluding the NASDAQ(R) Stock Market LLC
      ("NASDAQ") and the London Stock Exchange Alternative Investment Market
      ("AIM")) are valued at the last sale price on the exchange on which they
      are principally traded or, for NASDAQ and AIM securities, the official
      closing price. Securities traded on one or more than one securities
      exchange are valued at the last sale price or official closing price, as
      applicable, at the close of the securities exchange representing the
      principal market for such securities.

      Securities traded in an over-the-counter market are valued at the mean of
      the most recent bid and asked prices, if available, and otherwise at their
      closing bid price.

      Short-term investments that mature in less than 60 days when purchased are
      valued at amortized cost.

Certain securities may not be able to be priced by pre-established pricing
methods. Such securities may be valued by the Fund's Board of Trustees or its
delegate at fair value. These securities generally include, but are not limited
to, restricted securities (securities which may not be publicly sold without
registration under the Securities Act of 1933, as amended) for which a pricing
service is unable to provide a market price; securities whose trading has been
formally suspended; a security whose market price is not available from a
pre-established pricing source; a security with respect to which an event has
occurred that is likely to materially affect the value of the security after the
market has closed but before the calculation of the Fund's NAV or make it
difficult or impossible to obtain a reliable market quotation; and a security
whose price, as provided by the pricing service, does not reflect the security's
"fair value." As a general principle, the current "fair value" of a security
would appear to be the amount which the owner might reasonably expect to receive
for the security upon its current sale. The use of fair value prices by the Fund
generally results in prices used by the Fund that may differ from current market
quotations or official closing prices on the applicable exchange. A variety of
factors may be considered in determining the fair value of such securities,
including, but not limited to, the following:

    1)    the type of security;

    2)    the size of the holding;

    3)    the initial cost of the security;

    4)    transactions in comparable securities;

    5)    price quotes from dealers and/or pricing
          services;

    6)    relationships among various securities;

    7)    information obtained by contacting the issuer, analysts, or the
          appropriate stock exchange;

    8)    an analysis of the issuer's financial statements; and

    9)   the existence of merger proposals or tender offers that might affect
          the value of the security.

If  the  securities in question are foreign securities, the following additional
information may be considered:

    1)    the value of similar foreign securities traded on other foreign
          markets;

    2)    ADR trading of similar securities;

    3)    closed-end fund trading of similar securities;

    4)    foreign currency exchange activity;


Page 4



NOTES TO QUARTERLY PORTFOLIO OF INVESTMENTS - (CONTINUED)

      FIRST TRUST SPECIALTY FINANCE AND FINANCIAL OPPORTUNITIES FUND(FGB)
                         FEBRUARY 28, 2014 (UNAUDITED)


    5)    the trading prices of financial products that are tied to baskets of
          foreign securities;

    6)    factors relating to the event that precipitated the
          pricing problem;

    7)    whether the event is likely to recur; and

    8)    whether the effects of the event are isolated or whether they affect
          entire markets, countries or regions.


The  Fund  is subject to fair value accounting standards that define fair value,
establish  the  framework  for  measuring  fair  value and provide a three-level
hierarchy  for  fair  valuation based upon the inputs to the valuation as of the
measurement date. The three levels of the fair value hierarchy are as follows:

     o    Level 1 - Level 1 inputs are quoted prices in active markets for
          identical investments. An active market is a market in which
          transactions for the investment occur with sufficient frequency and
          volume to provide pricing information on an ongoing basis.

     o    Level 2 - Level 2 inputs are observable inputs, either directly or
          indirectly, and include the following:

          o     Quoted prices for similar investments in active markets.

          o     Quoted prices for identical or similar investments in markets
                that are non-active. A non-active market is a market where there
                are few transactions for the investment, the prices are not
                current, or price quotations vary substantially either over time
                or among market makers, or in which little information is
                released publicly.

          o     Inputs other than quoted prices that are observable for the
                investment (for example, interest rates and yield curves
                observable at commonly quoted intervals, volatilities,
                prepayment speeds, loss severities, credit risks, and default
                rates).

          o     Inputs that are derived principally from or corroborated by
                observable market data by correlation or other means.

     o    Level 3 - Level 3 inputs are unobservable inputs. Unobservable inputs
          may reflect the reporting entity's own assumptions about the
          assumptions that market participants would use in pricing the
          investment.

The  inputs  or  methodology used for valuing investments are not necessarily an
indication of the risk associated with investing in those investments. A summary
of  the  inputs used to value the Fund's investments as of February 28, 2014, is
included with the Fund's Portfolio of Investments.

B. SECURITIES TRANSACTIONS:

Securities  transactions  are  recorded as of the trade date. Realized gains and
losses from securities transactions are recorded on the identified cost basis.




ITEM 2. CONTROLS AND PROCEDURES.

   (a) The registrant's principal executive and principal financial officers, or
       persons performing similar functions, have concluded that the
       registrant's disclosure controls and procedures (as defined in Rule
       30a-3(c) under the Investment Company Act of 1940, as amended (the "1940
       Act") (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days
       of the filing date of the report that includes the disclosure required by
       this paragraph, based on their evaluation of these controls and
       procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
       270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
       Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)).

   (b) There were no changes in the registrant's internal control over financial
       reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR
       270.30a-3(d)) that occurred during the registrant's last fiscal quarter
       that have materially affected, or are reasonably likely to materially
       affect, the registrant's internal control over financial reporting.

ITEM 3. EXHIBITS.

Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of
the Sarbanes-Oxley Act of 2002 are attached hereto.


                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant)  First Trust Specialty Finance and Financial Opportunities Fund
             ----------------------------------------------------------------

By (Signature and Title)*               /s/ Mark R. Bradley
                                        ----------------------------------------
                                        Mark R. Bradley
                                        President and Chief Executive Officer
                                        (principal executive officer)

Date: March 20, 2014
     ------------------------


Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.

By (Signature and Title)*               /s/ Mark R. Bradley
                                        ----------------------------------------
                                        Mark R. Bradley
                                        President and Chief Executive Officer
                                        (principal executive officer)

Date: March 20, 2014
     ------------------------

By (Signature and Title)*               /s/ James M. Dykas
                                        ----------------------------------------
                                        James M. Dykas
                                        Treasurer, Chief Financial Officer and
                                        Chief Accounting Officer
                                        (principal financial officer)

Date: March 20, 2014
     ------------------------

*Print the name and title of each signing officer under his or her signature.