Series 27: Quarterly Security Count Rule

Quarterly Security Count Rule

The SEC requires broker-dealers to examine and count the securities they physically hold and to account for any securities subject to their control but not in their physical possession, such as loaned or borrowed securities, securities in transfer, fails to receive or deliver, or securities subject to repurchase agreements. All securities not in their possession longer than 30 days must also be verified. Broker-dealers must compare the results of the count and verification with their books and records and record all unresolved differences in a “security count difference account” no later than seven business days after the date of the quarterly examination.

The securities count may be performe