SEC Extends Compliance Deadline for Brokers on Daily Reserve Requirements

The SEC extended the compliance date for rule amendments that require certain broker-dealers to perform daily reserve computations and make the required daily deposits into their reserve bank accounts. The extension runs from December 31, 2025 to June 30, 2026.

As adopted, the amendments:

• "require certain broker-dealers to increase the frequency of the computations of the net cash they owe to customers and other broker-dealers from weekly to daily" under Rule 15c3-3 ("Customer protection-reserves and custody of securities");
• "permit certain broker-dealers that perform a daily customer reserve computation to decrease the required 3 percent 'buffer' in the customer reserve bank account by reducing the customer-related receivables charge (i.e., aggregate debit items charge) from 3 percent to 2 percent in the computation" under Rules 15c3-3 and 15c3-1 ("Net capital requirements for brokers or dealers"). (See Fact Sheet.)

The SEC said it extended the compliance date in response to concerns raised by industry representatives and carrying broker-dealers who argued that additional time was needed to develop and implement the complex systems, policies, and procedures necessary to perform daily computations. The SEC agreed that a six-month extension would allow firms to address these challenges, automate and test their systems, and ensure an orderly and effective transition to compliance.