The limited exemption will provide broker-dealers with more
time to make necessary operational or systems changes.
On October 17, the Securities and Exchange Commission (SEC)
issued an order1 providing a temporary exemption for
broker-dealers from certain of the financial responsibility rule
amendments that were adopted on July 30, 2013. At that time, the
SEC approved amendments to the net capital rule, the customer
protection rule, the books and records rules, and the notification
rules applicable to broker-dealers under the Securities Exchange
Act of 1934.2 The Financial Responsibility Rules
Amendments will, among other things, affect a broker-dealer's
practices with respect to (1) proprietary accounts of
broker-dealers, (2) the banks at which special reserve deposits may
be deposited and maintained, (3) the holding of futures positions
in a securities portfolio margin account, (4) securities lending
and borrowing activities, (5) the treatment of free credit
