Statements of financial condition, computation of adjusted net capital, etc.
18.—(1)  Every commodity broker, commodity futures broker and spot commodity broker shall prepare statements in the form determined by the Board in respect of each quarter for his business as a 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 such that the statements give a true and fair view of the state of affairs of the business.
(3)  Each statement prepared under paragraph (1) shall be signed by the commodity broker, commodity futures broker or spot commodity broker, or a director thereof and shall be lodged with the Board no later than 30 days after the end of each quarter.
(4)  If the adjusted net capital of a commodity broker, commodity futures broker or spot commodity broker, not being a member of a commodity market or 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 the higher, for 5 consecutive business days, he shall immediately submit the statements specified in this regulation to the Board on a weekly basis until the adjusted net capital of the broker exceeds $400,000 or is greater than 12.5% of the customer funds required to be segregated, for 8 consecutive weeks, following which the broker shall submit the statements quarterly.
(5)  The weekly statements required to be submitted under paragraph (4) shall be signed by the commodity broker, commodity futures broker or spot commodity broker, or a director thereof and shall be lodged with the Board no later than 3 business days after the end of each week.
(6)  Notwithstanding anything contained in regulation 17 and this regulation, a commodity broker, commodity futures broker or spot commodity broker who only trades in commodity contracts, commodity futures contracts or spot commodity contracts for himself 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 his 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 market or Commodity Futures Exchange of which the broker is a member.