SEC Rule 15c3-1

Provides an ecosystem to perform net capital computations and interoperate seamlessly with FOCUS reports and other requirements


Overview


Device Frame
Securities Haircuts and Net Capital Calculations

SEC Rule 15c3-1 requires firms to perform net capital computations that include haircuts (for securities), deficit calculations, and operational charges.

Challenges

  • Issues with poor data quality from upstream systems
  • Anomalies across internal and external data sources
  • Intricate haircut rules across various asset types

  • Reliance upon extensive manual processes, spreadsheets, and adjustments
  • Disparate data sources
  • Complex calculations

Questions to Consider

  • Does our technology enable us to efficiently ingest and process large data sets and models?
  • Are we prepared for heightened regulatory scrutiny of our data and reporting processes?
  • Are we satisfied with our overall data management capabilities?

  • Do we have a plan to eliminate the manual processes upon which we currently rely for reporting?
  • Are we confident that we have established repeatable processes that withstand examination?

Solution

Automated, Transparent Ecosystem for Broker-Dealer Reporting

AxiomSL’s end-to-end solution on ControllerView enables firms to satisfy the requirements of SEC Rule 15c3-1 and interoperates seamlessly with FOCUS and Supplemental Reports, SEC Rule 15c3-3, and other broker-dealer regulatory requirements. The solution is deployable on-premises or via AxiomSL’s RegCloud offering.

Powered by BrokerView, An Extensible Data Dictionary

  • BrokerView enables firms to introduce native data into ControllerView once ― and then use the data multiple times across many required calculations.

  • BrokerView data feeds into the FOCUS and Supplemental Reports and net capital calculations.

Capabilities

  • A common calculation moves positions into unique-to-purpose calculation modules
  • Direct access to detailed auditable information supporting each reported item
  • Transparent reconciliation process flow (data in and data out)

  • Reconciliation of 15c3-1 proprietary positions: inbound, exclusions, netting, convertibles, and final
  • Execution of FOCUS and Supplemental Reports
  • Solution Statement and Capabilities

Computation Coverage

  • Appendix A ― Risk-based haircuts (listed options) and other options using the standard calculation
  • Appendix B ― Futures and commodities capital charges
  • Sections (c)(2)(vi-vii) ― AtoM (securities haircuts)

  • Financing transactions charges
    • Securities borrowed and securities loaned
    • Repo and reverse repo
  • Fails to receive and deliver charges
    • Customer
    • Broker

Device Frame

Transparent Net Capital Calculation Engine


AxiomSL -  Transparent Net Capital Calculation Engine

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To learn more, download the U.S. Broker-Dealer Solutions brochure

Benefits

End-to-end process automation removes manual process risk and establishes efficiency and auditability

Calculation engine ensures that each security is assigned the most optimal haircut

Transparency enables users to quickly identify missing data to ensure accuracy

Flexible, modular architecture enables clients to align implementation with regulatory reporting strategy

RegCloud deployment reduces regulatory infrastructure TCO (total cost of ownership)

Transparent functionality enables astute management of net capital calculations and related regulatory reporting

Comparison and versioning functionality enables users to determine drivers of variances (day-over-day, day-over-prior month, etc.)

BrokerView data dictionary pre-qualifies certain third-party data to enable accelerated implementation

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