CFTC Form 1-FR-IB Instructions - National Futures Association

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Debt-Equity Ratio An IB's equity capital must be no less than 30% of its required debt-equity total. An IB can determine whether its debt-equity ratio is above or below 30% by making the following calculation: 1-FR-IB Item No. a. Total ownership equity 2570 $_____________ b. Qualifying subordinated debt 4635 _____________ c. Equity capital (a. + b.) $ ============= d. Total satisfactory subordinated debt 2260 $_____________ e. Excess net capital 3610 _____________ f. Required debt-equity total (a. + d. - e.) $ ============= g. Debt to equity ratio (c. divided by f.) _____________% An IB can determine by what amount its equity capital is deficient by making the following calculation: a. Total satisfactory subordinated debt 2260 $_____________ + b. Total ownership equity 2570 _____________ = c. Debt-equity total $_____________ - d. Excess net capital 3610 (_____________) = e. Required debt equity $ ============= f. 30% x amount on line e. $ ============= g. Total ownership equity 2570 $_____________ + h. Qualifying subordinated debt 4635 _____________ = i. Total equity capital $ ============= j. Excess equity capital (Deficiency) (i. - f.) $ =============
An IB which has an equity capital deficiency should consult with its DSRO or the Commission concerning the remedial action to be taken. See regulation 1.17(e)(2).
Page 1 and 2: ===================================
Page 3 and 4: PUBLIC REPORTING BURDEN Public repo
Page 5 and 6: FORM 1-FR-IB Instructions Where to
Page 7 and 8: FORM 1-FR-IB Instructions Contents
Page 9 and 10: FORM 1-FR-IB Instructions Pertinent
Page 11 and 12: National Futures Association, and t
Page 13 and 14: Unresolved Differences and Amounts
Page 15 and 16: FORM 1-FR-IB Instructions Cover Pag
Page 17 and 18: STATEMENT OF FINANCIAL CONDITION -
Page 19 and 20: Example 1 On 11-28-XX an IB enters
Page 21 and 22: current asset. If the IB has receiv
Page 23 and 24: Affiliates include the IB's parent
Page 25 and 26: In this case, $10,000 of the $24,00
Page 27 and 28: liability may be excluded from tota
Page 29 and 30: qualify for exclusion from liabilit
Page 31 and 32: STATEMENT OF THE COMPUTATION OF THE
Page 33 and 34: Line 5. - Haircuts on cash commodit
Page 35 and 36: Line 7. - Charges against repurchas
Page 37 and 38: Example Assume contract A has a $4,
Page 39 and 40: If a deficiency in SDN collateral e
Page 41 and 42: FORM 1-FR-IB Instructions Statement
Page 43: Equity Capital Equity capital is th
Page 47 and 48: self-regulatory organization requir
Page 49 and 50: FORM 1-FR-IB Instructions Reporting
Page 51 and 52: FR- IB (Statement of Financial Cond
Page 53 and 54: (B) Any excess market value of the
Page 55 and 56: (ii) 15 years but less than 20 year
Page 57 and 58: Canadian Debt Obligations (C) In th
Page 59 and 60: (ii) Between 5 years and 10 years a
Page 61 and 62: percentage deduction on such excess
Page 63 and 64: the proprietary or other accounts o
Page 65 and 66: (5) Conversion Accounts. Where a br

CFTC Form 1-FR-IB Instructions - National Futures Association

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