SECTION 3. DEBT/EQUITY RATIO REQUIREMENT.
(a) Requirement. Except as provided in (b) below, each Member FCM shall have
"Equity Capital" (as defined in Schedule B hereto), inclusive of "Satisfactory
Subordination Agreements" (as defined in Schedule C hereto) that qualify as Equity
Capital, of not less than 30 percent of the following amount: The Member's Equity
Capital plus the outstanding principal amount of Satisfactory Subordination Agreements.
[minus the excess of the Member's Adjusted Net Capital (See Schedule A) over the
minimum adjusted net capital required under Section 1 above.]
SECTION D2. INTERIM REPORTS. [Each Member FCM must file with its DSRO an
interim financial report, on Form 1-FR or other format acceptable to the DSRO, as of
a date six months after the date for which the certified financial report is due.] Each
Member FCM for which NFA is the DSRO shall [also] file with NFA an interim financial
report, on Form 1-FR or other format acceptable on a quarterly basis. (The term "other
format acceptable" is used so that FOCUS Reports may be used to fulfill a Member FCM's
filing requirements.) For Member FCMs which use the FOCUS Report to fulfill their filing
requirements, the interim report requirement is satisfied by the quarterly FOCUS Part II
or IIA which under SEC requirements is filed based on the calendar quarter.
D2-a. Due Date. Interim reports must be filed no later than  17 business days
after the date for which the report is made, except in those cases where a Member FCM has
applied to its DSRO and has received an approval for an extension, or has received a notice
from the DSRO that additional time is required to analyze the request, pursuant to D4-d(i)
below, in which case this provision does not apply.
Effective June 30, 1997, NFA Financial Requirements call for any unaudited financial report filed by an FCM or an IB not operating pursuant to a guarantee agreement to be filed with NFA within 17 business days. In order for FCMs and IBs to become acclimated to the new filing deadlines, the due dates for all unaudited financial reports as of a date from June 30, 1997 through December 31, 1997 will be 30 days after the date of the statement instead of 17 business days. Beginning with unaudited statements dated in 1998 the 17 business day requirement will apply.