§ 240.15c3-3a — Customer Reserve Formula.

The Customer Reserve Formula is a computation, performed in accordance with the formula set forth in § 240.15c3-3a, of the "net credit balance" a broker-dealer must hold in the Special Reserve Bank Account for the Exclusive Benefit of Customers. In summary:

Credits (amounts owed to customers).

- Free credit balances and other credit balances in customers' securities accounts; - Monies borrowed collateralized by customer securities; - Monies payable against customer securities loaned; - Customers' securities failed to receive (up to 30 calendar days); - Credit balances in firm accounts that are attributable to customer principal sales; and - Other items specified in the formula.

Debits (amounts owed by customers, offsetting).

- Debit balances in customers' margin accounts, subject to the concentrations and specified haircuts; - Securities borrowed to effectuate short sales by customers; - Failed-to-deliver securities representing customer sales up to 30 calendar days; - Margin required and on deposit with an options-clearing agency; and - Other items specified in the formula.

The required reserve deposit is the extent to which total credits exceed total debits. A broker-dealer must deposit cash or qualified securities in the Special Reserve Bank Account equal to the excess on the prescribed deposit date following each computation.