Market makers are dealers who do not carry customer accounts but do engage in the following activities:
• Regularly publish competitive bid and offer quotations in a recognized inter-dealer quotation system
or
• Furnish competitive bid and offer quotations on request
and
• Are ready, willing, and able to effect transactions in reasonable quantities at quoted prices with other brokers or dealers
Market makers must carry at least $100,000 but will not be required to carry more than $1,000,000. Requirements are established by the following rules:
• If the bid price for a security is $5 or less, the firm must carry $1,000 in net capital per security.
• If the bid price is more than $5, the firm must carry $2,500 in net capital per security.
Remember, even if the firm deals in securities that, when following the above rules, amount to a net capital amount of less than $100,000, it still must carry at least $100,000 in net capital.
SEA Rule 15c3-1(a)(2)
Type of Broker
Minimum Net Capital Requirement
Carrying firms that carry accounts and hold custody of client assets
$250,000
Firms that carry accounts, but do not hold custody of client assets
$100,000
Introducing firm that does not receive customer se
