SEC Net Capital Rule | Practical Law

SEC Net Capital Rule | Practical Law

SEC Net Capital Rule

SEC Net Capital Rule

Practical Law Glossary Item 8-588-1385 (Approx. 2 pages)

Glossary

SEC Net Capital Rule

An SEC financial responsibility rule (Rule 15c3-1) under the Securities Exchange Act of 1934 that sets minimum regulatory capital requirements for US registered broker-dealers. The rule focuses on liquidity and is designed to protect securities customers, counterparties, and creditors by requiring broker-dealers to have sufficient liquid resources on hand at all times to satisfy claims promptly.