15c3-3 Daily Computation Conversion

Since the inception of Rule 15c3-3 requirements in the early 1970s, most firms have been required to lockup excess customer funds on a weekly basis.  More recently, the trend is for firms to convert to a daily lockup in an effort to improve liquidity while enhancing the protection of customer assets. Whether all broker-dealers will be compelled to follow suit by regulators or not, every firm should consider whether a daily computation would be in their best interest.

As a result of the technology that is available to firms today, the ability to gather information, organize it and produce formal reporting has improved dramatically from the 1970s when weekly computations were first required. Many firms envision a fully automated approach that includes a “one button” system that produces their computation each day. However, few firms have enough resources or knowledge to create an automated computation process.