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Market Maker Exemption From Net Capital Rule |
 | | In addition, market makers that engage in more than occasional off-floor transactions, that are not directly related to their primary on-floor business, to the extent that the off-floor transactions are more than 25% of their total transactions will be required to file annually audited financial statements. |
 | | These market makers would be allowed to withdraw equity capital, however, so long as their tentative net capital, i.e., net capital before haircut and undue concentrations deductions, is equal to at least 25% of their total deductions and 120% of their required minimum net capital before haircuts. |
 | | In the case of a market maker subject to the net capital rule, the notice provisions of paragraph (e)(1) and the temporary restrictions on withdrawal of net capital of paragraph (e)(3) would be based upon tentative net capital rather than net capital. |
| www.amex.com /amextrader/tdrInfo/data/axNotices/2003/082703.html (1095 words) |