Minimum financial requirements for commodity futures brokers
16.—(1)  Subject to this regulation, every commodity futures broker shall not allow its adjusted net capital to fall below for 4 consecutive weeks the amount equal to or in excess of the higher of —
(a)$250,000; or
(b)10% of the amount of customer funds required to be segregated pursuant to these Regulations.
(2)  A commodity futures broker shall immediately inform the Commodity Futures Exchange or if he is not a member of a Commodity Futures Exchange shall immediately inform the Board if its adjusted net capital —
(a)falls below $400,000; or
(b)is less than 12.5% of the amount of customer funds required to be segregated pursuant to these Regulations,
whichever is higher.
(3)  If the adjusted net capital of a commodity futures broker —
(a)being a member of a Commodity Futures Exchange, falls below the minimum financial requirements specified by the Exchange, it shall immediately operate its business in such manner and on such conditions as the Commodity Futures Exchange may decide. The Commodity Futures Exchange shall notify the Board, which may review, affirm, modify or set aside the conditions stipulated by the Commodity Futures Exchange and may in addition issue such directions to the commodity futures broker as it thinks fit and that futures broker shall comply with the direction; or
(b)not being a member of a Commodity Futures Exchange, falls below $250,000 or 10% of the amount of customer funds required to be segregated, whichever is higher, it shall immediately operate its business in such manner and on such conditions as the Board may decide.
(4)  The Board may, after assessing the financial condition of a commodity futures broker, including a member of a Commodity Futures Exchange, direct the commodity futures broker to meet such other financial requirements as the Board may determine.