The U.S. Securities and Exchange Commission (SEC) approved FINRA’s proposed amendments (Amendments) to Rule 4210 on July 27, 2023.
In summary, the Amendments amend Rule 4210 in the following respects:
- Eliminate the 2% maintenance margin for nonexempt accounts.
- Permit dealers to take a capital charge in lieu collecting margin from accounts for net mark-to-market losses provided that the dealer’s net capital deductions for all accounts combined cannot exceed $25 million.
- Make certain clarifying and conforming changes to Rule 4210.