Financial Requirements for Broker-Dealers.

A. Terms Defined. For purposes of the Maryland Securities Act, Corporations and Associations Article, §11-409, Annotated Code of Maryland , and this regulation, the terms “net capital” and “aggregate indebtedness” have the meanings stated in 17 CFR §240.15c3-1 (SEC Rule 15c3-1, Net Capital Requirements for Brokers and Dealers), which is incorporated by reference. B. Broker-Dealers Subject to §15 of the Securities Exchange Act of 1934. A broker-dealer that is registered in Maryland and that is subject to §15 of the Securities Exchange Act of 1934 shall maintain the net capital required by 17 CFR §240.15c3-1 (SEC Rule 15c3-1 Net Capital Requirements for Brokers and Dealers), which is incorporated by reference. C. Broker-Dealers Not Subject to §15 of the Securities Exchange Act of 1934. (1) A broker-dealer that is registered in Maryland and that is not subject to §15 of the Securities Exchange Act of 1934 shall: (a) Maintain a net capital of not less than $15,000; and (b) Not permit its aggregate indebtedness to exceed 2000 percent of its net capital. (2) A registered broker-dealer that deals exclusively in securities exempt under the Maryland Securities Act, Corporations and Associations Article, §11-601(1) or (2), Annotated Code of Maryland, is exempt from the requirement of §C(1)(b) of this regulation . D. Exemption. The Commissioner by order may exempt a registered broker-dealer from the requirements of this regulation.