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Aside from the $5 billion tentative net capital reporting requirement established for CSE Brokers in the 2004 rule change, the SEC required before and after 2004 "early warning" notice to the SEC if a broker-dealer's net capital fell below a specified level higher than the required minimum that would trigger a broker-dealer liquidation.
This owes to changes to the net capital rule, Rule 15c3-1, that the US Securities and Exchange Commission adopted in July 2013, [4] which amended the regulatory capital requirements for US-regulated broker-dealers and required sponsored access trades to go through the sponsoring broker's pre-trade risk layer.
Some state laws and broker/dealer policies also require the Series 63 examination (known as the Uniform Securities Agent State Law Exam). [ citation needed ] [ 1 ] A registered representative ("RR" or "rep" or "broker") is authorized to sell a large array of securities such as stocks, bonds, options, mutual funds, limited partnership programs ...
The Securities Act of 1933 regulates the distribution of securities to public investors by creating registration and liability provisions to protect investors. With only a few exemptions, every security offering is required to be registered with the SEC by filing a registration statement that includes issuer history, business competition and material risks, litigation information, previous ...
Broker-dealers are at the heart of the securities and derivatives trading process. [1] Although many broker-dealers are "independent" firms solely involved in broker-dealer services, many others are business units or subsidiaries of commercial banks, investment banks or investment companies.
Before and after the CFMA, federal banking regulators imposed capital and other requirements on banks that entered into OTC derivatives. [1] The U.S. Securities and Exchange Commission (SEC) and CFTC had limited "risk assessment" authority over OTC derivatives dealers affiliated with securities or commodities brokers and also jointly administered a voluntary program under which the largest ...
In the United States, a primary dealer is a bank or securities broker-dealer that is permitted to trade directly with the Federal Reserve System ("the Fed"). [8] Such firms are required to make bids or offers when the Fed conducts open market operations , provide information to the Fed's open market trading desk, and to participate actively in ...
Gross Dealer Concession or GDC is the revenue to a brokerage firm when commissioned securities and insurance salespeople sell a product, whether it is an investment like stocks, bonds, or mutual funds, or insurance like life insurance or long term care insurance.