SEC proposes changes to safeguard customers from potential broker-dealer failures

<img width="250" height="151" src="https://www.leaprate.com/wp-content/uploads/2022/07/SEC-250×151.jpg" class="webfeedsFeaturedVisual wp-post-image" alt="SEC" decoding="async" style="float: left; margin-right: 5px;" link_thumbnail="" srcset="https://www.leaprate.com/wp-content/uploads/2022/07/SEC-250×151.jpg 250w, https://www.leaprate.com/wp-content/uploads/2022/07/SEC-700×422.jpg 700w, https://www.leaprate.com/wp-content/uploads/2022/07/SEC-768×463.jpg 768w, https://www.leaprate.com/wp-content/uploads/2022/07/SEC-120×72.jpg 120w, https://www.leaprate.com/wp-content/uploads/2022/07/SEC-245×148.jpg 245w, https://www.leaprate.com/wp-content/uploads/2022/07/SEC-500×301.jpg 500w, https://www.leaprate.com/wp-content/uploads/2022/07/SEC.jpg 880w" sizes="(max-width: 250px) 100vw, 250px" /><p>The US securities regulator explained that broker-dealers may encounter significant deposit obligations from time to time due to customer and PAB reserve calculations. SEC is suggesting that broker-dealers with a net cash balance of $250 million or more must perform daily calculations and promptly deposit the corresponding cash into the reserve account by the close of the subsequent business day.</p>
<p>The <a href="https://www.leaprate.com/tag/sec/" target="_blank" rel="noopener">SEC</a> emphasized that proposed modification aims to assist broker-dealers in aligning the cash they owe to their customers and external broker-dealers with the funds they deposit into designated reserve bank accounts. By shortening the interval between calculations, the proposal’s goal is to reduce the likelihood of accumulating significant disparities over time, thereby mitigating the potential for customers to suffer greater losses in the event of a broker-dealer&#8217;s failure.</p>
<p>The regulatory body is gathering public feedback on the proposal for a period of 30 days following the publication of the proposal in the Federal Register.</p>
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