Regulatory Alerts2023-07-12
Daily Computation of Customer and Broker-Dealer Reserve Requirements under the Broker-Dealer Customer Protection Rule
The Securities and Exchange Commission proposes to amend Rule 15c3-3 to require certain carrying broker-dealers with large customer and proprietary account balances to perform daily reserve computations and make corresponding daily deposits into their bank accounts, replacing the current weekly requirement. This change aims to shorten periods of mismatch between net cash owed and funds held, thereby reducing the risk of substantial shortfalls and customer losses during broker-dealer financial failures or Securities Investor Protection Act liquidations. The Commission is also soliciting comments on whether similar daily computation mandates should extend to security-based swap dealers regarding their security-based swap customers.
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