What is the minimum net capital requirement for a clearing BD?
What is the minimum net capital requirement for a fully disclosed BD?
What is the minimum net capital requirement for a fully disclosed BD that does not receive securities?
What is the minimum net capital requirement for a M&A BD?
What is the minimum net capital requirement for a LP BD?
Non-clearing BD's that have >10 transactions/yr or endorse OTC option contracts have what minimum net capital requirement?
If an introducing firm receives and promptly transmits checks from customers that are made payable to a 3rd party, what is the NCR?
If an introducing firm receives and promptly transmits customers securities, what is the NCR?
When an ______ firm signs a clearing agreement, the clearing BD must provide a list of all reports it can generate based on the activities of the firm. This must be updated by January 31st to the ____ & ______ _____ of the _______ member.
Introducing; CEO; Compliance Officer; introducing
A clearing Pime Broker must have MNC of $_______ and it must notify FINRA that it is acting as a Prime Broker.
An Executing Broker in the Prime Broker relationship must maintain how much MNC?
What is the MNC for a Market Maker?
The Market Maker's rule requires capital of $1,000 for each security bid at $_ or less.
The Market Maker's rule requires capital of $2,500 for each security over $_ bid.
For a Market Maker the max capital required based on markets made is $____
A Market Maker must maintain liquidity equity of at least what percentage for long and then for short positions?
An exception to the Market Makers NCR is made for exchange specialists who? (4)
Only deal with other BD's; Do not carry customer accounts; Do not effect transactions in OTC options; Only effect trades through a Market Maker account cleared and carried by another BD
What is the NCR for Mutual Fund BD's that accept wire orders from customers?
What is the NCR for Mutual Fund BD's that accept subscriptions from customers?
Allowable Asset? Cash.
Allowable Asset? Cash in reserve account.
Allowable Asset? Customer debit balances.
Allowable Asset? Fails to deliver.
Yes, when the customer delivers the security, the firm will deliver and thereby eliminate the fail.
Allowable Asset? Notes Receivable.
Allowable if fully secured.
Allowable Asset? Inventory.
Allowable Asset? Stock Borrowed.
Allowable Asset? Exchange Membership.
Non-allowable, the value, if sold in a liquidation would be uncertain.
Allowable Asset? Real Estate.
Non-allowable since fixed assets are difficult to liquidate.
Allowable Asset? Prepaid Expenses.
Non-allowable, the expense would probably not be recovered in a liquidation.
When a margin customer borrows funds the money lent by the BD is carried as a credit or debit to the asset account?
It is a debit to Customer Debit Balances
How are assets to be haircut valued?
Current Market Value
What is the Basic Equities Haircut?
15% off the current market value. The equity is marked-to-market first and then the haircut is calculated.
When a customer buys securities on margin he has how many days after the first margin call?
When a customer buys securities on margin he has how many additional days after the first margin call if granted a reg T extension?
3 more days
If funds do not arrive at the end of the first reg T extension what happens to the position?
It is marked-to-market and the haircut is taken.
The clearing firm must notify the introducing firm of a collateral deficiency each day and the introducing broker must reflect the changes where and when?
It must reflect the changes in it's Net Capital computation on the following business day.
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