Series 28: Carrying Firms

Carrying Firms

Carrying firms, also called clearing firms, not only handle customer orders and accounts, but also keep custody of the funds and securities of their customers. Carrying firms must have at least $250,000 in net capital.

XYZ Brokerage, from the previous example, would be considered a carrying firm, as it carries customers’ accounts and keeps custody of their funds. In order to comply with FINRA and the SEC’s net capital rules, it must have at least $250,000 in net capital. Since it falls short of this requirement by more than $60,000, it must notify the SEC a