4114. Calculating current capital position — weekly documentation

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    1. At least weekly, but more frequently if required (for instance, the Dealer Member is close to violating an early warning test or volatile market conditions exist), the Chief Financial Officer or designate must document that he or she has:

      1. received management reports produced by the Dealer Member’s accounting system showing information relevant to estimating the Dealer Member’s risk adjusted capital amount,

      2. obtained other information about items that, while perhaps not yet recorded in the accounting system, are likely to significantly affect the Dealer Member’s risk adjusted capital amount (for instance, bad and doubtful debts, unreconciled positions, underwriting and inventory commitments and margin requirements),

      3. calculated the Dealer Member’s risk adjusted capital amount, compared it to planned and prior period capital levels, and reported adverse trends or variances to the Ultimate Designated Person,

      4. performed the early warning liquidity and capital test calculations for the Dealer Member and determined whether or not the Dealer Member has or may have violated any of these tests, and

      5. performed the early warning profitability test calculations for the Dealer Member where the Dealer Member has experienced a significant month-to-date loss, and determined whether or not the Dealer Member has or may have violated this test.

    There is no history log for this rule.

    There is no history log for this rule.