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
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        First Trust Specialty Finance and Financial Opportunities Fund
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              (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
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                      Date of fiscal year end: November 30
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                  Date of reporting period: August 31, 2016
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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 (FGB)
PORTFOLIO OF INVESTMENTS
AUGUST 31, 2016 (UNAUDITED)



 SHARES/UNITS                                DESCRIPTION                                       VALUE
---------------  --------------------------------------------------------------------     ---------------
COMMON STOCKS - BUSINESS DEVELOPMENT COMPANIES - 106.7%

                                                                                    
                 CAPITAL MARKETS - 106.7%
        134,877  Alcentra Capital Corp. (a)..........................................     $     1,696,753
        204,200  American Capital Ltd. (a) (b).......................................           3,448,938
        551,102  Apollo Investment Corp. (a).........................................           3,378,255
        747,412  Ares Capital Corp. (a)..............................................          12,078,178
        103,900  BlackRock Capital Investment Corp. (a)..............................             906,008
        103,945  CM Finance, Inc. (a)................................................             999,951
        195,000  FS Investment Corp. (a).............................................           1,924,650
        142,533  Gladstone Investment Corp. .........................................           1,308,453
         50,529  Goldman Sachs BDC, Inc. (a).........................................           1,109,617
        514,730  Golub Capital BDC, Inc. (a).........................................           9,841,638
         16,699  Harvest Capital Credit Corp. .......................................             208,737
        504,598  Hercules Capital, Inc. (a)..........................................           6,892,809
        340,472  KCAP Financial, Inc. ...............................................           1,504,886
         49,107  Main Street Capital Corp. (a).......................................           1,687,316
         83,353  Medallion Financial Corp. ..........................................             394,260
        586,714  Medley Capital Corp. (a)............................................           4,435,558
        489,164  New Mountain Finance Corp. (a)......................................           6,975,479
        152,084  OFS Capital Corp. (a)...............................................           2,110,926
         82,645  PennantPark Floating Rate Capital Ltd. (a)..........................           1,076,864
        745,081  PennantPark Investment Corp. (a)....................................           5,938,296
        307,809  Solar Capital Ltd. (a)..............................................           6,322,397
        204,529  Stellus Capital Investment Corp. (a)................................           2,321,404
        433,728  TCP Capital Corp. (a)...............................................           7,169,524
        637,618  THL Credit, Inc. (a)................................................           6,459,070
        206,751  TPG Specialty Lending, Inc. (a).....................................           3,857,974
        316,594  Triangle Capital Corp. (a)..........................................           6,369,871
        473,845  TriplePoint Venture Growth BDC Corp. (a)............................           5,363,925
                                                                                          ---------------
                 TOTAL COMMON STOCKS - BUSINESS DEVELOPMENT COMPANIES ...............         105,781,737
                 (Cost $108,295,243)                                                      ---------------

REAL ESTATE INVESTMENT TRUSTS - 11.7%
        407,782  Annaly Capital Management, Inc. (a).................................           4,367,345
        696,880  CYS Investments, Inc. (a)...........................................           6,139,513
        108,500  Capstead Mortgage Corp. (a).........................................           1,076,320
                                                                                          ---------------
                 TOTAL REAL ESTATE INVESTMENT TRUSTS ................................          11,583,178
                 (Cost $15,715,814)                                                       ---------------

MASTER LIMITED PARTNERSHIPS - 1.5%

                 DIVERSIFIED FINANCIAL SERVICES - 1.5%
         88,200  Compass Diversified Holdings .......................................           1,521,450
                 (Cost $191,079)                                                          ---------------

                 TOTAL INVESTMENTS - 119.9% .........................................         118,886,365
                 (Cost $124,202,136) (c)

                 OUTSTANDING LOAN - (25.2%) .........................................         (25,000,000)



                        See Notes to Portfolio of Investments





FIRST TRUST SPECIALTY FINANCE AND FINANCIAL OPPORTUNITIES FUND (FGB)
PORTFOLIO OF INVESTMENTS (CONTINUED)
AUGUST 31, 2016 (UNAUDITED)



                                             DESCRIPTION                                       VALUE
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                 NET OTHER ASSETS AND LIABILITIES - 5.3% ............................     $     5,255,576
                                                                                          ---------------
                 NET ASSETS - 100.0% ................................................     $    99,141,941
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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 August 31, 2016, the
      aggregate gross unrealized appreciation for all securities in which there
      was an excess of value over tax cost was $10,959,907 and the aggregate
      gross unrealized depreciation for all securities in which there was an
      excess of tax cost over value was $16,275,678.

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

VALUATION INPUTS

A summary of the inputs used to value the Fund's investments as of August 31,
2016 is as follows (see Note 2A - Portfolio Valuation in the Notes to Portfolio
of Investments):



                                                                                     LEVEL 2         LEVEL 3
                                                      TOTAL          LEVEL 1       SIGNIFICANT     SIGNIFICANT
                                                     VALUE AT         QUOTED        OBSERVABLE     UNOBSERVABLE
                                                    8/31/2016         PRICES          INPUTS          INPUTS
                                                  --------------  --------------  --------------  --------------
                                                                                      
Common Stocks - Business Development
  Companies*....................................  $  105,781,737  $  105,781,737  $           --  $           --
Real Estate Investment Trusts ..................      11,583,178      11,583,178              --              --
Master Limited Partnerships*....................       1,521,450       1,521,450              --              --
                                                  --------------  --------------  --------------  --------------
Total Investments...............................  $  118,886,365  $  118,886,365  $           --  $           --
                                                  ==============  ==============  ==============  ==============



* 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 August 31, 2016.


                        See Notes to Portfolio of Investments





NOTES TO PORTFOLIO OF INVESTMENTS

      FIRST TRUST SPECIALTY FINANCE AND FINANCIAL OPPORTUNITIES FUND (FGB)
                          AUGUST 31, 2016 (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").

The Fund, which is an investment company within the scope of Financial
Accounting Standards Board ("FASB") Accounting Standards Update 2013-08, follows
accounting and reporting guidance under FASB Accounting Standards Codification
Topic 946, "Financial Services - Investment Companies."

                     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. 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 the absence of
market value with respect to any portfolio securities, at fair value. Market
value prices represent last sale or official closing prices from a national or
foreign exchange (i.e., a regulated market) and are primarily obtained from
third-party pricing services. Fair value prices represent any prices not
considered market value prices and are either obtained from a third-party
pricing service, or are determined by the Pricing Committee of the Fund's
investment advisor, First Trust Advisors L.P. ("First Trust" or the "Advisor"),
in accordance with valuation procedures adopted by the Fund's Board of Trustees,
and in accordance with provisions of the 1940 Act. Investments valued by the
Advisor's Pricing Committee are footnoted as such in the footnotes to the
Portfolio of Investments. The Fund's investments are valued as follows:

      Common stocks, real estate investment trusts, master limited partnerships
      and other equity securities listed on any national or foreign exchange
      (excluding The Nasdaq 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 fair valued at the
      mean of their most recent bid and asked price, if available, and otherwise
      at their closing bid price.

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, the Advisor's Pricing Committee, 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 or fair value 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. When fair value prices are used, generally they will differ from
market quotations or official closing prices on the applicable exchanges. 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





NOTES TO PORTFOLIO OF INVESTMENTS (CONTINUED)

      FIRST TRUST SPECIALTY FINANCE AND FINANCIAL OPPORTUNITIES FUND (FGB)
                          AUGUST 31, 2016 (UNAUDITED)


      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;

      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 methodologies 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 August 31, 2016, 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
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By (Signature and Title)*               /s/ James M. Dykas
                                        ----------------------------------------
                                        James M. Dykas
                                        President and Chief Executive Officer
                                        (principal executive officer)

Date: October 20, 2016
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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/ James M. Dykas
                                        ----------------------------------------
                                        James M. Dykas
                                        President and Chief Executive Officer
                                        (principal executive officer)

Date: October 20, 2016
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By (Signature and Title)*               /s/ Donald P. Swade
                                        ----------------------------------------
                                        Donald P. Swade
                                        Treasurer, Chief Financial Officer and
                                        Chief Accounting Officer
                                        (principal financial officer)

Date: October 20, 2016
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*Print the name and title of each signing officer under his or her signature.