Minimum Net Capital Requirements

Question 1

Members offering exclusively mutual fund shares

(and other investment company products)

Answer 1

$5,000 or $25,000

For firms that accept wire orders from fund customers, the minimum is $25,000. For firms that sell on a subscription basis only, the minimum is $5.000.

Question 2

Introducing Firms (Fully Disclosed Firms)

Answer 2

$5,000 or $50,000, depending on business structure.

$50,000 introducing firms can receive (but not hold) customer securities in-house for prompt (immediate or same day) forwarding to it clearing firm and can participate in a firm commitment underwriting as a selling group member. $5,000 firms cannot.

Question 3

Dealers

Answer 3

$100,000

Member firms that:
* endorse (write) over-the-counter (nonlisted, nonstandardized) options; or
* effect more than 10 transactions per year in its investment account

Question 4

Carrying Firms

Answer 4

$250,000 or 6 2/3% of Aggregate Indebtedness

Question 5

Market Makers

Answer 5

$100,000 to $1 Million

• Bid price of $5 or less - $1,000 in net capital per security
• Bid price of more than $5 - $2,500 in net capital per security

Question 6

Clearing Firms

Answer 6

$250,000

Question 7

Executing brokers in prime brokerage relationships

Answer 7

$1 million