Securities Trader Representative (Series 57) Practice Exam

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Question: 1 / 150

What is the minimum net capital a firm must maintain after registering as a Qualified Third Market Maker, according to SEC rule 15c3-1?

$50,000

$100,000

The minimum net capital a firm must maintain after registering as a Qualified Third Market Maker is $100,000. This amount is specified in SEC rule 15c3-1, which establishes capital requirements for broker-dealers to ensure they have enough financial resources to meet potential liabilities and support their operations.

As a Qualified Third Market Maker, firms participate in the facilitation of trading by providing liquidity, and the net capital requirement is a safeguard that enhances the stability of the market and protects investors. By maintaining a set minimum level of net capital, the rule aims to ensure that these market makers can meet their obligations and conduct transactions effectively without posing undue risk to the market.

In contrast, other amounts listed in the options do not apply to this specific designation, as they either reflect different roles in the trading ecosystem or pertain to different regulatory requirements.

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$250,000

$500,000

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