What actions must a firm take if an account does not meet a minimum equity deficiency by T + 3?
The account must be limited to transactions that would lower margin requirements. Any new transactions that would increase margin requirements in the portfolio margin account must be booked in either the cash account or the Regulation T margin account, until such time as the equity deficiency is satisfied. If an introducing broker has intra-day capability, but the trades are executed away from the clearing firm and therefore not reported until the end of the day, what amount of minimum equity would FINRA require for the introducing broker? (Added 09/07) Although the introducing broker has the capability to monitor accounts intra-day, the clearing broker-dealer is ultimately responsible for monitoring the accounts of the introducing broker and cannot rely on the introducing broker’s intra-day monitoring. Therefore, because the trades are executed away, the customers of the introducing broker will have to maintain equity of $500,000. However, if the introducing broker is able to provide
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- What actions must a firm take if an account does not meet a minimum equity deficiency by T + 3?
