Adjusted net capital
18.  For the purposes of these Regulations, “adjusted net capital” means net capital less the following:
(a)the amount by which any advances paid by the commodity futures broker on cash commodity contracts and used in computing net capital exceeds 95% of the market value of the commodities covered by such contracts;
(b)in the case of all inventories which are hedged by hedging positions in any market, the amount by which the value of such inventories used in computing the net capital exceeds 95% of the market value of such inventories;
(c)in the case of all inventories which are not hedged by any hedging positions in any market, the amount by which the value of such inventories in computing the net capital exceed 80% of the market value of such inventories;
(d)in the case of any government security used by the commodity futures broker in computing the net capital, the amount by which the value of such security exceeds 100% of the market value of such security;
(e)in the case of shares and other securities used by the commodity futures broker in computing the net capital, the amount by which the value of such shares or securities exceeds 90% of the market value of such shares or securities;
(f)for under-margined commodity futures contracts accounts belonging to customers, the amount of money required for each account to meet the relevant maintenance margin requirements, if such amount shall have been outstanding (after call) for more than 3 business days. If there are no such relevant maintenance margin requirements then, when the original margin has been depleted by 50% or more, the amount of money required to restore the original margin if such amount shall have been outstanding (after call) for more than 3 business days.
Provided that to the extent a deficit is excluded from current assets in accordance with this paragraph, such amount shall not also be deducted. In the event that a customer shall have deposited any asset other than cash into his account, the value attributable to such asset for purposes of this paragraph shall be the value attributable to the asset pursuant to the relevant margin rules of a Commodity Futures Exchange or commodity futures market; and
(g)the relevant margin requirement on open commodity futures contracts held in the proprietary accounts of the commodity futures broker which are hedged.