(a) Every registered government securities broker or dealer, other than a government securities interdealer broker that is subject to the financial responsibility requirements of Sec. 402.1(e) and a government securities broker or dealer that is also a futures commission merchant registered with the CFTC, shall comply with the requirements of Sec. 240.17a-11 of this title (SEC Rule 17a-11), with the following modifications:
(1) References to ``broker or dealer'' include registered government securities brokers and dealers.
(2) References to Sec. 240.15c3-1, relating to net capital, mean Sec. 402.2 of this chapter.
(3) References to ``net capital'' mean ``liquid capital'' as defined in Sec. 402.2 of this chapter.
(4) References to Sec. 240.17a-5, relating to reports and audit, mean Sec. 405.2(a) of this chapter.
(5) Section 240.17a-11(c), for the purposes of this section, is modified to read as follows:
``(c) Every registered government securities broker or dealer shall send notice promptly (but within 24 hours) in accordance with paragraph (g) of this section if a computation made pursuant to the requirements of Sec. 402.2 of this title shows, at any time during the month, that its liquid capital is less than 150 percent of total haircuts, determined in accordance with Sec. 402.2 of this title, or that its capital after deducting total haircuts from liquid capital is less than 120 percent of the registered government securities broker or dealer's minimum capital requirement specified in Sec. 402.2 (b) or (c) of this title as applicable.''
(6) References to Sec. 240.17a-3, relating to records, mean Sec. 404.2 of this chapter.
(b) A government securities interdealer broker that is subject to the financial responsibility requirements of Sec. 402.1(e) of this chapter shall comply with the requirements of Sec. 240.17a-11 of this title (SEC Rule 17a-11), with the following modifications:
(1) References to ``broker or dealer'' include government securities interdealer brokers;
(2) References to Sec. 240.15c3-1, relating to net capital, include the modifications contained in Sec. 402.1(e) of this chapter.
(3) References to ``net capital'' mean net capital calculated as provided in Sec. 402.1(e) of this chapter.
(4) References to Sec. 240.17a-5, relating to reports and audit, mean Sec. 405.2(b) of this chapter.
(5) References to Sec. 240.17a-3, relating to records, mean Sec. 404.2 of this chapter.
(c) A registered government securities broker or dealer that is also a futures commission merchant registered with the CFTC shall comply with the requirements of Sec. 240.17a-11 of this title (SEC Rule 17a-11), with the following modifications:
(1) References to ``broker or dealer'' include government securities brokers and dealers.
(2) References to Sec. 240.15c3-1, relating to net capital, mean either Sec. 240.15c3-1 or Sec. 1.17 of this title, depending on which computation results in the higher net capital requirement.
(3) References to ``net capital'' mean the higher of net capital calculated under Sec. 240.15c3-1 or Sec. 1.17 of this title.
(4) References to Sec. 240.17a-5, relating to reports and audit, mean Sec. 405.2(c) of this chapter.
(5) Section 240.17a-11(c) for the purposes of this section is modified to read as follows:
``(c) Every broker or dealer shall send notice promptly (but within 24 hours) after the occurrence of the events specified in paragraphs (c)(1), (c)(2), (c)(3), or (c)(4) of this section in accordance with paragraph (g) of this section:''
(6) A new paragraph 240.17a-11(c)(4) is added to read as follows:
``(4) If a computation made by a government securities broker or dealer that is not a registered broker or dealer but that is also a futures commission merchant registered with the Commodity Futures Trading Commission shows that:
``(i) The adjusted net capital of such entity is less than the greater of:
``(A) 150 percent of the appropriate minimum dollar amount required by Sec. 1.17(a)(1)(i), or
``(B) 6 percent of the following amount: The customer funds required to be segregated pursuant to Sec. 4d(2) of the Commodity Exchange Act and Sec. 1.17 of this title, less the market value of commodity options purchased by option customers on or subject to the rules of a contract market, provided, however, the deduction for each option customer shall be limited to the amount of customer funds in such option customer's account; or
``(ii) At any point during the month, aggregate indebtedness is in excess of 1200 percent of net capital or total net capital is less than 120 percent of the minimum net capital required.''
(7) References to Sec. 240.17a-3, relating to records, mean Sec. 404.2 of this chapter. (Approved by the Office of Management and Budget under control number 1535-0089) [52 FR 27954, July 24, 1987, as amended at 59 FR 53731, Oct. 26, 1994; 59 FR 55910, Nov. 9, 1994; 60 FR 18734, Apr. 13, 1995]