1 yr Lockup of Funds at Prop

[Esq Esq Esq]

Quote from JamesL:

So how exactly does a lock up deposit at a firm which uses this deposit for capitalization, that then blows up due to one or two traders, safer?

They need to file focus reports and their net capital is checked daily.
Violation during the day may cause firm shutdown unless they refund the account.
Much harder to blow up with this set up then with no oversight

Not saying its 100% safe - just safer.

 

[Rodney King]

Quote from el pollo:

I see nobody has an answer, ya' gotta love this site!

You claimed "there's an SEC rule" and received replies that there isn't. It isn't the case that "nobody has an answer", it's the case that the answer isn't what you apparently expected. If you think the answer is wrong -- and that such an SEC rule exists, contrary to the various posters' assertions -- the burden is on you to prove it.

 

[cactus_trader]

SEC rule 15c3 for the 1 yr lock up. look in your legal agreement when you sign up with a firm.

some firms have enough cash around, if you leave early they will cut you a check for the remaining amount etc

 

[JamesL]

This still doesn't address my original question:

where in SEC 15c3 does it specify this requirement?

http://www.law.uc.edu/CCL/34ActRls/rule15c3-1.html

 

[stumpzy]

Quote from JamesL:

This still doesn't address my original question:

where in SEC 15c3 does it specify this requirement?

http://www.law.uc.edu/CCL/34ActRls/rule15c3-1.html

debt-equity requirements looks good.