Series 28: Specialists And Market Maker Accounts

Taken from our Series 28 Online Guide

Specialists and Market Maker Accounts

A broker-dealer that carries a market maker or specialist account must deduct for each account it carries any deficiency in that market maker or specialist’s required collateral. This deduction also applies to any transaction that a broker-dealer guarantees or endorses in exchange-listed options written by a specialist. The required collateral for these accounts is 25% of the market value for all long positions and 30% of market value for all short positions. If the collateral falls short of this requirement, the broker-dealer must deduct the difference from its net capital. The account must be marked to market daily.

SEC Rule 15c3-1(c)(2)(xi)

Other Haircuts
Undue Concentration	Value makes up more than 10% of firm’s tentative net capital	Additional haircut applied to the portion that exceeds 10% tentative net capital Equity securities—15%

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Undue Concentration

Value makes up more than 10% of firm’s tentative net capital

Additional haircut applied to the portion that exceeds 10% tentative net capital

Equity securities—15%

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