Series 26: Reduction Of Business

Reduction of Business

A member firm that carries customer accounts or clears transactions must reduce its business to a point that enables its available capital to exceed its net capital requirements, when any of the following conditions continue to exist for more than 15 consecutive business days:

• • Net capital is less than 125% of its minimum net capital requirement
• • The member is subject to the aggregate indebtedness requirement, and its aggregate indebtedness is more than 1,200% of its net capital
• • The member elects to use the alternative metho