Sec. 130.826 - Registered Dealer Net Capital Requirements

ยง 130.826. Registered Dealer Net Capital Requirements

a) Each dealer registered under Section 8 of the Act shall at all times have and maintain net capital no less than the greater of the higher minimum requirement applicable to its ratio requirement under 17 CFR 240.15c3 - 1 (May 31, 2011). No dealer electing to use the alternative standard shall permit its net capital to be less than the greater of the amount set forth in 17 CFR 240.15c3 - 1 (May 31, 2011) or 2 percent of the aggregate debit items computed in accordance with 17 CFR 240.15c3 - 3 (May 31, 2011).

b) In addition to meeting the requirement set forth in subsection (a), a dealer subject to the aggregate indebtedness standard of net capital computation shall maintain the amount specified in 17 CFR 240.15c3 - 1 (May 31, 2011).

c) Each dealer shall make the applicable computations set forth in subsection (a) in accordance with the provisions of 17 CFR 240.15c3 - 3 (May 31, 2011) and shall preserve the computations as part of the records required by Section 130.825.

d) The Secretary may exempt a dealer from the requirements of this Section because of the special nature of business or financial position of the dealer and the safeguards that have been established for the protection of customers' funds and securities, and it is not necessary in the public interest or for the protection of investors for the dealer to be subject to the requirements of this Section.

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Amended at 36 Ill. Reg. 2852, effective February 8, 2012

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