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 FUND
               (Exact name of registrant as specified in charter)

                        120 East Liberty Drive, Suite 400
                                WHEATON, IL 60187
               (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
                     (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, 2009

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 (A) (B)
FEBRUARY 28, 2009 (UNAUDITED)



  SHARES                         DESCRIPTION                            VALUE
  ------    -----------------------------------------------------   ------------
                                                              
COMMON STOCKS - 124.1%
            CAPITAL MARKETS - 78.8%
  436,806   Apollo Investment Corp. .............................   $  1,804,008
1,088,333   Ares Capital Corp. ..................................      3,917,999
  690,000   BlackRock Kelso Capital Corp. .......................      2,587,500
  508,000   Gladstone Capital Corp. .............................      3,352,800
  183,333   Gladstone Investment Corp. ..........................        740,665
   50,500   GSC Investment Corp. ................................        100,495
  506,205   Hercules Technology Growth Capital, Inc. ............      2,191,868
   50,000   Highland Distressed Opportunities, Inc. .............         99,500
  571,667   Kohlberg Capital Corp. ..............................      1,120,467
    8,875   Main Street Capital Corp. ...........................         89,638
  432,000   MCG Capital Corp. ...................................        328,320
  655,000   MVC Capital, Inc. ...................................      5,207,250
  351,737   NGP Capital Resources Co. ...........................      2,131,526
  600,000   Patriot Capital Funding, Inc. .......................      1,080,000
  600,000   PennantPark Investment Corp. ........................      1,800,000
  705,152   Prospect Energy Corp. ...............................      5,704,680
  475,485   TICC Capital Corp. ..................................      1,445,474
                                                                    ------------
                                                                      33,702,190
                                                                    ------------
            DIVERSIFIED FINANCIAL SERVICES - 10.9%
   47,800   Compass Diversified Holdings ........................        421,118
  238,300   Fifth Street Finance Corp. ..........................      1,615,674
   15,111   Financial Federal Corp. .............................        287,109
  459,504   Medallion Financial Corp. ...........................      2,343,470
                                                                    ------------
                                                                       4,667,371
                                                                    ------------
            REAL ESTATE INVESTMENT TRUSTS (REITS) - 34.4%
  350,000   Annaly Capital Management, Inc. .....................      4,865,000
  260,000   Arbor Realty Trust, Inc. ............................        150,800
   63,789   Capital Trust, Inc. - Class A .......................        106,528
  192,307   Cypress Sharpridge Investments, Inc. (c) (d) ........      2,419,222
  259,900   Gramercy Capital Corp. ..............................        197,524
  133,195   Hatteras Financial Corp. (c) ........................      3,176,701
  180,000   iStar Financial, Inc. ...............................        252,000
  297,000   MFA Financial, Inc. .................................      1,704,780
  874,918   NorthStar Realty Finance Corp. ......................      1,784,833
   80,600   RAIT Financial Trust ................................         67,704
                                                                    ------------
                                                                      14,725,092
                                                                    ------------
            TOTAL COMMON STOCKS .................................     53,094,653
                                                                    ------------
            (Cost $180,790,273)
CANADIAN INCOME TRUSTS - 0.0%
            OIL, GAS & CONSUMABLE FUELS - 0.0%
      100   ARC Energy Trust ....................................          1,097
       81   Progress Energy Resources Corp. (e) .................            574
                                                                    ------------
            TOTAL CANADIAN INCOME TRUSTS ........................          1,671
                                                                    ------------
            (Cost $3,347)


                See Notes to Quarterly Portfolio of Investments


                                     Page 1



FIRST TRUST SPECIALTY FINANCE AND FINANCIAL OPPORTUNITIES FUND
PORTFOLIO OF INVESTMENTS (A) (B) - (CONTINUED)
FEBRUARY 28, 2009 (UNAUDITED)



  SHARES                         DESCRIPTION                            VALUE
  ------    -----------------------------------------------------   ------------
                                                              
WARRANTS - 0.0%
            REAL ESTATE INVESTMENT TRUST (REIT) - 0.0%
  576,923   Cypress Sharpridge Investments, Inc., expires
               04/30/11 (c) (d) (e) .............................   $          0
                                                                    ------------
            TOTAL WARRANTS                                                     0
                                                                    ------------
            (Cost $0)
            TOTAL INVESTMENTS - 124.1% ..........................     53,096,324
            (Cost $180,793,620) (f)
            OUTSTANDING LOAN - (26.8)% ..........................    (11,450,000)
            NET OTHER ASSETS AND LIABILITIES - 2.7% .............      1,135,955
                                                                    ------------
            NET ASSETS - 100.0%. ................................   $ 42,782,279
                                                                    ============


----------
(a)  All percentages shown in the Portfolio of Investments are based on net
     assets.

(b)  All or a portion of the securities are available to serve as collateral on
     the outstanding loan.

(c)  This security is fair valued in accordance with the procedures adopted by
     the Fund's Board of Trustees.

(d)  This security, sold within the terms of a private placement memorandum, is
     exempt from registration under Rule 144A of the Securities Act of 1933, as
     amended (the "1933 Act"), and may be resold in transactions exempt from
     registration, normally to qualified institutional buyers. (See Note 1C -
     Restricted Securities in the Notes to Quarterly Portfolio of Investments.

(e)  Non-income producing security.

(f)  Aggregate cost for financial reporting purposes which approximates the
     aggregate cost for federal income tax purposes. As of February 28, 2009,
     the aggregate gross unrealized appreciation for all securities in which
     there was an excess of value over tax cost was $1,023,525 and the aggregate
     gross unrealized depreciation for all securities in which there was an
     excess of tax cost over value was $128,720,821.

SECURITY VALUATION INPUTS

A summary of the inputs used to value the Fund's investments as of February 28,
2009 is as follows (See Note 1A - Portfolio Valuation in the Notes to Quarterly
Portfolio of Investments):



VALUATION INPUTS                                   INVESTMENTS
----------------                                   -----------
                                                
Level 1 - Quoted Prices ........................   $50,677,102
Level 2 - Other Significant Observable Inputs ..            --
Level 3 - Significant Unobservable Inputs ......     2,419,222
                                                   -----------
TOTAL ..........................................   $53,096,324
                                                   ===========



The following table presents the Fund's investments measured at fair value on a
recurring basis using significant unobservable inputs (Level 3) for the period
presented.



INVESTMENTS AT FAIR VALUE USING SIGNIFICANT
UNOBSERVABLE INPUTS (LEVEL 3)                         INVESTMENTS
-------------------------------------------           -----------
                                                   
Balance as of November 30, 2008 ...................    $2,419,222
Change in unrealized appreciation (depreciation) ..            --
                                                       ----------
BALANCE AS OF FEBRUARY 28, 2009 ...................    $2,419,222
                                                       ==========


Net unrealized depreciation from Level 3 investments held as of February 28,
2009 was $580,767.

                See Notes to Quarterly Portfolio of Investments


                                     Page 2



NOTES TO QUARTERLY PORTFOLIO OF INVESTMENTS

         FIRST TRUST SPECIALTY FINANCE AND FINANCIAL OPPORTUNITIES FUND
                         FEBRUARY 28, 2009 (UNAUDITED)

                     1. VALUATION AND INVESTMENT PRACTICES

A. PORTFOLIO VALUATION:

The net asset value ("NAV") of the Common Shares of First Trust Specialty
Finance and Financial Opportunities Fund (the "Fund") is determined daily as of
the close of regular trading on the New York Stock Exchange ("NYSE"), normally
4:00 p.m. Eastern time, on each day the NYSE is open for trading. 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 the absence of
market value with respect to any portfolio securities, at fair value according
to procedures adopted by the Fund's Board of Trustees. A majority of the Fund's
assets are valued using market information supplied by third parties. In the
event that market quotations are not readily available, the pricing service does
not provide a valuation for a particular asset, or the valuations are deemed
unreliable, the Fund's Board of Trustees has designated First Trust Advisors
L.P. ("First Trust") to use a fair value method to value the Fund's securities
and investments. Additionally, if events occur after the close of the principal
markets for particular securities (e.g., domestic debt and foreign securities),
but before the Fund values its assets, that could materially affect NAV, First
Trust may use a fair value method to value the Fund's securities and
investments. The use of fair value pricing by the Fund is governed by valuation
procedures adopted by the Fund's Board of Trustees and in accordance with the
provisions of the Investment Company Act of 1940, as amended.

Portfolio securities listed on any exchange other than the NASDAQ National
Market ("NASDAQ") are valued at the last sale price on the business day as of
which such value is being determined. If there has been no sale on such day, the
securities are valued at the mean of the most recent bid and asked prices on
such day. Securities traded on the NASDAQ are valued at the NASDAQ Official
Closing Price as determined by NASDAQ. Portfolio securities traded on more than
one securities exchange are valued at the last sale price on the business day as
of which such value is being determined at the close of the exchange
representing the principal market for such securities. Portfolio securities
traded in the over-the-counter market, but excluding securities traded on the
NASDAQ, are valued at the closing bid prices. Short-term investments that mature
in less than 60 days when purchased are valued at amortized cost.

In September 2006, the Financial Accounting Standards Board ("FASB") issued
Statement of Financial Accounting Standards No. 157, Fair Value Measurements
("FAS 157"), effective for fiscal years beginning after November 15, 2007. This
standard clarifies the definition of fair value for financial reporting,
establishes a framework for measuring fair value and requires additional
disclosures about the use of fair value measurements. The three levels of the
fair value hierarchy under FAS 157 are described as follows:

     -    Level 1 - quoted prices in active markets for identical securities

     -    Level 2 - other significant observable inputs (including quoted prices
          for similar securities, interest rates, prepayment speeds, credit
          risk, etc.)

     -    Level 3 - significant unobservable inputs (including the Fund's own
          assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an
indication of the risk associated with investing in those securities. A summary
of the inputs used to value the Fund's investments as of February 28, 2009 is
included in 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.


                                     Page 3



NOTES TO QUARTERLY PORTFOLIO OF INVESTMENTS - (CONTINUED)

         FIRST TRUST SPECIALTY FINANCE AND FINANCIAL OPPORTUNITIES FUND
                         FEBRUARY 28, 2009 (UNAUDITED)

C. RESTRICTED SECURITIES:

The Fund invests in restricted securities, which are securities that cannot be
offered for public sale without first being registered under the 1933 Act. Prior
to registration, restricted securities may only be resold in transactions exempt
from registration. As of February 28, 2009, the Fund held restricted securities
as shown in the table below. The Fund does not have the right to demand that
such securities be registered. These securities are valued according to the
valuation procedures as stated in the Portfolio Valuation footnote (Note 1A) and
are not expressed as a discount to the carrying value of comparable unrestricted
securities.



                                                                CARRYING
                                       ACQUISITION             VALUE PER                                   % OF
SECURITY                                   DATE       SHARES     SHARE     CARRYING COST      VALUE     NET ASSETS
--------                               -----------   -------   ---------   -------------   ----------   ----------
                                                                                      
Cypress Sharpridge Investments, Inc.     5/19/08     192,307     $12.58      $2,999,989    $2,419,222      5.65%
Cypress Sharpridge Investments, Inc.
   Warrants                              5/19/08     576,923         --              --            --        --
                                                     -------                 ----------    ----------      ----
                                                     769,230                 $2,999,989    $2,419,222      5.65%
                                                     =======                 ==========    ==========      ====



                                     Page 4


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/ JAMES A. BOWEN
                         -------------------------------------------------------
                          James A. Bowen, Chairman of the Board, President and
                          Chief Executive Officer
                          (principal executive officer)


Date        APRIL 27, 2009
    ----------------------------------------------------------------------------


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 A. BOWEN
                         -------------------------------------------------------
                          James A. Bowen, Chairman of the Board, President and
                          Chief Executive Officer
                          (principal executive officer)

Date        APRIL 27, 2009
    ----------------------------------------------------------------------------


By (Signature and Title)*  /S/ MARK R. BRADLEY
                         -------------------------------------------------------
                         Mark R. Bradley, Treasurer, Controller, Chief Financial
                         Officer and Chief Accounting Officer
                         (principal financial officer)

Date        APRIL 27, 2009
    ----------------------------------------------------------------------------



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