Aggregate Debit Items
A debit item is an accounting entry on a company’s balance sheet that either increases assets or decreases liabilities. For purposes of computing net capital using the alternative method, broker-dealers must include these items.
Debit balances in customers’ cash and margin accounts. A debit balance is money that a customer borrows from a broker-dealer. The amount of the debit balance included in the calculation of aggregate debit items is subject to these exclusions and adjustments:
- • Unsecured debit balances and accounts doubtful of collection are excluded.
- • Cash and margin accounts of affiliated persons and relatives of the firm’s principals are excluded.
- • If a specific security being held as collateral for a customer’s margin account exceeds 15% of the aggregate value of all the securities used as collateral