Statements of financial condition, computation of adjusted net capital, etc.
19.—(1) A commodity futures broker shall cause statements in the form determined by the Board in respect of each quarter to be prepared in relation to its business as a commodity futures broker.
(2) The assets and liabilities of the business shall be brought into account in the statements at such amounts to be classified and described therein in such manner that the statements give a true and fair view of the state of affairs.
(3) Each statement prepared pursuant to paragraph (1) shall be signed by a director and shall be lodged with the Board not later than 30 calendar days after the end of each quarter.
(4) If the adjusted net capital of a commodity futures broker, not being a member of a Commodity Futures Exchange, falls below $400,000 or is less than 12.5% of the amount of customer funds required to be segregated, whichever is higher for 5 consecutive business days, it shall forthwith submit the statements prescribed in this paragraph to the Board on a weekly basis until the adjusted net capital of the commodity futures broker exceeds $400,000 and is greater than 12.5% of the customer funds required to be segregated, for 8 consecutive weeks, following which the commodity futures broker can submit the prescribed statements quarterly.
(5) The weekly statements required to be submitted under paragraph (4) shall be signed by a director and shall be lodged with the Board not later than 3 business days after the end of each week.
(6) Notwithstanding anything contained in regulation 16 and this regulation, a commodity futures broker who only trades in commodity futures contracts for itself or for customers which are related corporations may, with the approval of the Board, maintain an adjusted net capital of not less than $25,000 in addition to an irrevocable letter of credit issued on its behalf by a bank acceptable to the Board for an amount of not less than $1 million made in favour of the Board or, with the approval of the Board, in favour of the Commodity Futures Exchange of which the commodity futures broker is a member.