Regulatory Alerts2025-01-13 | 2024-31178Added
Daily Computation of Customer and Broker-Dealer Reserve Requirements Under the Broker-Dealer Customer Protection Rule
The Securities and Exchange Commission adopted amendments to the broker-dealer customer protection rule requiring certain carrying broker-dealers to perform daily reserve computations for customer and proprietary accounts instead of the previous weekly requirement. This mandate applies to firms with aggregate credits exceeding $500 million to mitigate intra-week mismatches that could delay customer reimbursements in the event of a financial failure. The rule also permits these affected broker-dealers to reduce aggregate debit items by 2% rather than 3% during the computation and includes technical conforming amendments to the FOCUS Report.
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