Net Capital Requirements

What this video covers

• How the at-all-times net capital floor uses the greater of the ratio requirement or highest activity minimum, then adds consolidated subsidiary or affiliate minimums and applicable reverse repurchase amounts
• The aggregate indebtedness standards of 1,500% for established firms and 800% for the first 12 months of a firm's business, and why the startup ratio is not a penalty
• How the alternative standard works as a greater-of test between $250,000 and 2% of aggregate debit items, including the notice requirement and locked election
• How activity minimums differ for firms carrying customer accounts, qualifying introducing firms, no-margin-account exemptions, and dealers affecting more than 10 own-account transactions
• Why promptly generally means noon of the next business day, and how the settlement date proviso applies to transmission and delivery but not forwarding
• How market maker capital uses a 30-day average, $2,500 per security above $5, $1,000 per security at $5 or less, and a $1,000,000 ceiling
• How reverse repurchase add-ons use 105%, 110%, or 120% thresholds, and how the floor broker election uses a $15,000 membership value and escrow for only the shortfall