What is SEC Rule 15c3-3?
Securities and Exchange Commission (SEC) Rule 15c3-3 requires brokerage firms to maintain secure accounts. Also known as the Customer Protection Rule, SEC Rule 15c3-3 is part of the Code of Federal Regulations. It ensures that brokerage clients can withdraw assets at any time, and a brokerage has to work to uphold it.
What is SEC Rule 15c3 5?
Rule 15c3-5 will require a broker or dealer that has market access, or that provides a customer or any other person with access to an exchange or ATS through use of its MPID or otherwise, to establish, document, and maintain a system of risk management controls and supervisory procedures reasonably designed to manage …
What are 15c3 deposits?
SEC Rule 15c3–3 provides regulatory safeguards over customers’ funds and securities held by brokers and dealers. It requires every broker or dealer to maintain with an insured depository institution(s) an account separate from any other bank account of the broker or dealer at all times when deposits are required.
What does 15c mean in stocks?
SEC Form 15: An Overview SEC Form 15 is a voluntary filing with the Securities and Exchange Commission (SEC), also known as the Certification and Notice of Termination of Registration. It is used by companies to revoke their registrations as publicly-traded corporations.
What is regulation ATS?
Alternative trading system (ATS) is a US and Canadian regulatory term for a non-exchange trading venue that matches buyers and sellers to find counterparties for transactions. An ATS must be approved by the United States Securities and Exchange Commission (SEC) and is an alternative to a traditional stock exchange.
What is a k2i account?
(k)(2)(i) – Commonly used as a catch-all for broker-dealers whose business activities don’t otherwise qualify for another exemption. To qualify, a broker-dealer must carry no margin accounts, promptly transmit all customer funds and deliver all securities received in connection with its activities as a broker-dealer.
What are the amendments to SEC Rule 15c3-3?
The amendments permit a broker-dealer to include margin related to security futures products written, purchased, or sold in customer securities accounts required and on deposit with a registered clearing agency or a derivatives clearing organization as a debit item in calculating its customer reserve requirement under specified conditions.
What does sea rule 15c3-3-finra mean?
CUSTOMER PROTECTION – RESERVES AND CUSTODY OF SECURITIES SEA Rule 15c3-3. (a) DEFINITIONS. For the purpose of this section: (1) The term “ customer” shall mean any person from whom or on whose behalf a broker or dealer has received or acquired or holds funds or securities for the account of that person.
What does Rule 15c3-3 require broker dealers to do?
Rule 15c3-3 requires broker-dealers to determine, each business day, the number of customer fully paid and excess margin securities in their possession or control and the number of fully paid and excess margin securities that are not in the broker-dealer’s possession or control.
Who is covered by CFR § 240.15c3-3?
Except where otherwise noted, § 240.15c3-3 applies to a broker or dealer registered under section 15 (b) of the Act ( 15 U.S.C. 78o (b) ), including a broker or dealer also registered as a security-based swap dealer or major security-based swap participant under section 15F (b) of the Act ( 15 U.S.C. 78o-10 (b) ).
