What are SEC net capital requirements?
Any introducing broker who rebates a portion of its commission back to its customers either as a cash payment or to a creditor of the customer is required to maintain a minimum net capital requirement of at least $250,000.
What is a securities based swap dealer?
Designation under Title VII of the Dodd-Frank Act for an entity that engages in a large notional amount of security-based swap (SBS) activity.
What swaps does SEC have jurisdiction over?
The SEC has authority over “security-based swaps,” which are broadly defined as swaps based on (1) a single security or (2) a loan or (3) a narrow-based group or index of securities or (4) events relating to a single issuer or issuers of securities in a narrow-based security index.
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.
Why do broker-dealers have capital requirements?
The SEC has stated the net capital rule is intended to require “every broker-dealer to maintain at all times specified minimum levels of liquid assets, or net capital, sufficient to enable a firm that falls below its minimum requirement to liquidate in an orderly fashion.” The Basic Method tries to reach this goal by …
What are the types of swaps?
Different Types of Swaps
- Interest Rate Swaps.
- Currency Swaps.
- Commodity Swaps.
- Credit Default Swaps.
- Zero Coupon Swaps.
- Total Return Swaps.
- The Bottom Line.
How does a swap dealer make money?
A fixed-rate payer (e.g. a swap dealer) of a cancellable swap pays more interest than he receives because he has the right to terminate the swap after a certain time if rates fall.
Does the SEC have jurisdiction over interest rate swaps?
The SEC has regulatory authority over “security-based swaps,” which are defined as swaps based on a single security or loan or a narrow-based group or index of securities (including any interest therein or the value thereof), or events relating to a single issuer or issuers of securities in a narrow-based security …
What swaps does the CFTC regulate?
It includes, for example, interest rate swaps, commodity swaps, currency swaps, equity swaps and credit default swaps.
What are minimum capital requirements for swap participants?
They establish minimum capital requirements for security-based swap dealers and major security-based swap participants for which there is not a prudential regulator (nonbank SBSDs and MSBSPs). They also increase the minimum net capital requirements for broker-dealers that use internal models to compute net capital (ANC broker-dealers).
What are capital, margin, and segregation requirements for swap dealers?
RIN 3235-AL12 Capital, Margin, and Segregation Requirements for Security-Based Swap Dealers and Major Security-Based Swap Participants and Capital and Segregation Requirements for Broker-Dealers AGENCY:
What was the final rule for security based swaps?
The final rule also makes several amendments to existing capital requirements for FCMs to impose specific requirements for swaps and security-based swaps.
When did CFTC adopt swap dealer capital rule?
Adoption of this rule marks the completion of the CFTC’s required rulemakings under Section 731 of the Dodd-Frank Act, which was enacted 10 years ago this week.