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What do I do if my Adjusted Net Capital is below the minimum net capital requirement?

You must immediately notify the appropriate regulator. FCMs and RFEDs must immediately call the regional office of the CFTC, the CFTC's Washington DC office, and the firm's DSRO. If the firm is also a securities broker-dealer, it must also notify the SEC. Within 24 hours of the call, the firm must send written notification to these same organizations via facsimile. IBs must immediately call NFA and all FCMs the IB introduces accounts to. Likewise, the IB must send written notification via facsimile to all of these organizations within 24 hours of the call. See CFTC Regulation 1.12.

An undercapitalized firm must also take immediate action to bring its Adjusted Net Capital above the firm's minimum net capital requirement. Financial statements and supporting documentation must be sent to the agencies that received notification.

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