1 Analyses of this federal-register by attorneys

  1. SEC Proposes To Amend Broker-Dealer Customer Protection Rule Reserve Account Calculation Requirements

    Perkins CoieSeptember 6, 2023

    8-10.[4] According to 2022 FOCUS data, the largest required additional deposit into customer reserve bank accounts of carrying broker-dealers ranged from $1.6 billion to over $6.0 billion following the customer reserve computation. The largest required additional deposits carrying broker dealers PAB reserve bank accounts ranged from approximately $350 million to over $4.0 billion. See Proposing Release at 23.[5]See Proposing Release at 21-22.[6]Id. at 26-32.[7]See Statement on Proposed Amendments to Exchange Act Rule 15c3-3, Commissioner Hester M. Peirce, (July 12, 2023) (available here)[8]See Proposing Release at 16, note 40 (“With some limited exceptions set forth in SIPA, all registered broker-dealers are SIPC members. 15 U.S.C. 78ccc(a)(2)).[9]See Id. at 16.[10]Id. at 38-40.[11]See Capital, Margin, and Segregation Requirements for Security-Based Swap Dealers and Major-Security-Based Swap Participants and Capital and Segregation Requirements for Broker-Dealers, Exchange Act Release No. 86175 (June 21, 2019), 84 FR 43872, 43930-43 (Aug. 22, 2019).[12]See Proposing Release at 40.[13]Id.[14] According to 2022 FOCUS data, 63 carrying broker-dealers exceeded the proposed $250 Million threshold.[15]See Proposing Release at 25.[16] Rule 15c3-3 currently permits carrying broker-dealers to perform the reserve computation on a daily basis, and in limited circumstances to perform monthly computations.[17]See Proposing Release at 61.[View source.]