Minimum financial requirements for commodity brokers and commodity futures brokers, etc.
17.—(1) Every commodity broker, commodity futures broker and spot commodity broker shall not allow his adjusted net capital to fall, for 4 consecutive weeks, below the amount equal to or in excess of —
(a)
$250,000; or
(b)
10% of the amount of customer funds required to be segregated under these Regulations,
whichever is the higher.
(2) In the case where a commodity broker or commodity futures broker is a member of a Commodity Futures Exchange or a commodity market, if the adjusted net capital of such broker falls below $400,000 or is less than 12.5% of the amount of customer funds required to be segregated under these Regulations, whichever is the higher, he shall —
(a)
immediately inform the Exchange or market concerned; and
(b)
immediately operate his business in such manner and on such conditions as the Exchange or market may decide.
(3) The Commodity Futures Exchange or commodity market referred to in paragraph (2) shall also notify the Board, which may review, affirm, modify or set aside the conditions stipulated by the market or Exchange, and may in addition issue such directions to the commodity broker or commodity futures broker as it thinks fit, and the broker shall comply with the direction.
(4) In the case where a commodity broker, commodity futures broker or spot commodity broker is not a member of a Commodity Futures Exchange or a commodity market, if the adjusted net capital of such broker falls below $400,000 or is less than 12.5% of the amount of customer funds required to be segregated, whichever is the higher, he shall immediately —
(a)
notify the Board; and
(b)
operate his business in such manner and on such conditions as the Board may decide.
(5) The Board may, after assessing the financial condition of any commodity broker, commodity futures broker or a spot commodity broker, including a member of a commodity market or Commodity Futures Exchange, direct the broker to meet such other financial requirements as the Board may determine.