Rule 15c3-1

Rule 15c3-1

An SEC rule setting capital requirements for brokers and dealers. Under Rule 15c3-1, a broker or dealer must have sufficient liquidity in order to cover the most pressing obligations. This is defined as having a certain amount of liquidity as a percentage of the broker/dealer's total obligations. If the percentage falls below a certain point, the broker or dealer may not be allowed to take on new clients and may have restrictions placed on dealings with current clients.

Rule 15c3-1

An SEC rule that sets minimum net capital requirements for broker-dealers. Firms are expected to have liquid assets equal to or greater than a certain percentage of total liabilities. If the ratio falls below this minimum, the broker-dealer may face restrictions on soliciting new business or on keeping existing business.
References in periodicals archive ?
received a notice from the Financial Industry Regulatory Authority ("FINRA") that it was out of compliance with the SEC's Net Capital Rule 15c3-1 and, accordingly, that such subsidiary must cease conducting a securities business, other than liquidating transactions, while remaining out of compliance with this rule.
Gravitas: SEC Rule 15c3-1 require a securities firm to cease doing business if it is not in compliance
Federal securities laws require brokerage firms to maintain a certain amount of net capital pursuant to Rule 15c3-1, 17 C.
Further, on September 13, 2012, NASDAQ halted trading of the Common Stock following the Company's announcement on September 12, 2012, that the Company's broker-dealer subsidiary, Rodman & Renshaw, LLC, had advised the Financial Industry Regulatory Authority ("FINRA") that it was no longer in compliance with the SEC's Net Capital Rule 15c3-1, and, accordingly, that such subsidiary would cease conducting its securities business, other than liquidating transactions, unless and until it can achieve compliance with the rule.
Empire), which has operated as a separate broker dealer, received an adverse arbitration award that resulted in the company being out of compliance with SEC's Net Capital Rule 15c3-1.
has resumed full operation after reviewing its compliance with the SEC's Net Capital Rule 15c3-1.
2 million; * The Company's net capital at December 31, 2000, calculated pursuant to SEC Rule 15c3-1, stood at dlrs 4.