Sec Form X17a 5 Part Ii (Page 10 of 17) in pdf

Market Value

Greater of

Long

Short

Long or Short

Coffee

$ 200,000

$ 100,000

$ 200,000

Cotton

1,500,000

1,000,000

1,500,000

Sugar

300,000

200,000

300,000

Corn

500,000

700,000

Oats

150,000

Wheat

1,000,000

1,300,000

$4,150,000

Amount Required ½% of Total

20,750

Customer maintenance margin deficiencies

Deduct the amount of cash required in each customer’s and non-customer’s securities account to meet the maintenance margin

requirements of the regulatory or self-regulatory authority designed as the Examining Authority for the broker or dealer, after

application of calls for margin, marks-to-the market, or other required deposits which are outstanding 5 business days or less.

Aged fails to deliver

Deduct the percentages of the market value of each failed to deliver contract which is outstanding 15 business days or longer

which would be required by application of the deduction required by subparagraph (c)(2)(vi), or, where appropriate, paragraph (f)

of Rule 15c3-1, on the underlying security. Provided, that such deduction shall be increased by any excess of the contract price of

the fail to deliver over the market value of the underlying security position or reduced by any excess of the market value of the

underlying security over the contract value of the fail but not to exceed the amount of the deduction. Effective January 1, 1977, this

charge shall be applied to each fail to deliver contract outstanding 11 business days or longer.

Aged short security differences

Deduct the market value of all short securities differences unresolved for 7 business days after discovery and the market value

of any long security differences where such securities have been sold by the broker or dealer until they are adequately resolved,

less any reserves established therefor.

Secured demand note deficiency

If the value of securities and cash collateralizing a secured demand note contributed for purposes of capital under Rule 15c3-1

after application of the deductions specified in subparagraph (c)(2)(vi) of Rule 15c3-1 is less than the unpaid principal amount of

the secured demand note, such deficiency shall be deducted.

Haircuts

Undue concentration – Basic Net Capital Computation under Rule 15c3-1.

In the case of money market instruments or securities of a single class or series of an issuer, including any option written,

endorsed or held to purchase or sell securities of such a single class of series of an issuer (other than “exempted securities”), which

are long or short in the proprietary, or other accounts of a broker or dealer for more than 11 business days, and which have a market

value of more than 10% of the “net capital” of a broker or dealer before the application of subparagraph (c)(2)(vi) or Appendix

A to Rule 15c3-1, there shall be an additional deduction from net worth equal to 50% of the percentage deductions otherwise

provided by subparagraph (c)(2)(vi) or Appendix A to Rule 15c3-1 on that portion of the securities position in excess of 10% of

the “Net Capital” of the broker or dealer before the application of subparagraph (c)(2)(vi) or Appendix A to Rule 15c3-1. (See

subparagraph (c)(2)(vi)(M) of Rule 15c3-1 for further provisions).

Contractual commitments

Deduct, in the case of a broker or dealer who has open contractual commitments (other than option positions treated in

Appendix A to Rule 15c3-1), the respective deductions as specified in subparagraph (c)(2)(vi) or Appendix B to Rule 15c3-1 (in

the case of a broker or dealer electing to operate pursuant to paragraph (f) of Rule 15c3-1, the percentage deduction for contractual

commitments in securities described in subparagraph (f)(3)(ii) shall be 30%) from the value (which shall be the market value

whenever there is a market) of each net long and each net short position contemplated by any existing contractual commitment in

the proprietary and other accounts of the broker or dealer. (See subparagraph (c)(2)(viii) of Rule 15c3-1 for further provisions).

SEC1695A (02-04) 10 of 17

Sec Form X17a 5 Part Ii Page 10

Related Articles

Related forms

Related Categories