PREPARATION OF REPORT The source documents for the preparation of this report will be: 1. General ledger accounts, subsidiary ledgers, and cash, security and commodity blotters 2. Stock record and detail records 3. Other books and records of the member organization. To complete the report, the following method is suggested: 1. The Balance Sheet should be completed for those items which do not require supporting schedules. This information may be taken directly from the general ledger accounts or the general ledger trial balance. (See Part II for instructions). 2. The supporting Schedules should be completed. The information for these schedules will be obtained primarily from the general ledger accounts or the general ledger trial balance. Upon completion, the information from these schedules is to be carried forward to the Balance Sheet and the Computation of Net Capital and Aggregate Indebtedness. (See Part II for Instructions). 3. The information on the Balance Sheet should be carried forward to the Computation of Net Capital and Aggregate Indebtedness. 4. Appropriate supplementary information should be completed and carried forward to the financial and operating footnotes, which are an integral part of the financial statements. 5. Other supplementary information should be completed for the remaining items as instructed. 6. The Summary Report (potential operational and financial exposure and risk of capital) should be prepared after all the above have been done. This draft makes reference only to rules of the New York Stock Exchange, Inc. In its final form, the consolidated report will also refer to the applicable rules of other regulatory organizations. In the preparation of this report, reference should be made to the instructions which are attached. These instructions are an integral part of the report. It is required that all corporate affiliates and guaranteed subsidiaries and any other subsidiaries used by the parent for Rule 325 value complete this report as of the same date as the parent organization; the latter will respond on an unconsolidated basis. Rule 322, guaranteed corporate subsidiaries. Rule 323, corporate limited partners, Rule 324, associated partnerships, must meet separate capital requirements. A computation of Net Capital and Aggregate Indebtedness is required to be prepared, and submitted, as of the same date of the parent organization. A balance sheet of such corporate subsidiaries, corporate limited partners, associated partnerships is to be prepared as of the same date as the member organization's balance sheet. The balance sheet is to be submitted whenever the parent organization is required to submit its balance sheet to the New York Stock Exchange, Inc. To assure that the information is accurate and uniform any financial statement, accompanying schedules and other accounting data submitted to the Exchange shall be prepared in conformity with generally accepted accounting principles (except where otherwise requested) applied on a basis consistent with that of the preceding report and shall include, in the basic statement or accompanying footnotes all informative disclosures necessary to make the statement a clear expression of the organization's financial and operating condition. The respondent must report all data after proper accruals have been made for income and expense not recorded in the books of account and adequate reserves have been provided for deficits in customer or broker, accounts, unrecorded liabilities, security differences, dividends, etc. Assets, such as marketable securities and commodities, must be marked to market with the unrealized appreciation or depreciation reflected in net worth as reported. Every member organization of the New York Stock Exchange, Inc. shall make and keep current a record of the proof of money balances of all ledger accounts in the form of trial balances, and also a record of the Computation of Aggregate Indebtedness and Net Capital, as of the trial balance date, pursuant to Rule 325. Such trial balances and computations shall be prepared currently and at least once a month. The computations shall be submitted monthly to the New York Stock Exchange, Inc., in the standard form prescribed. Notwithstanding these monthly submissions, the member organization's responsibility for maintaining its required Net Capital and prescribed Net Capital Ratio is continual, and the required records shall be maintained adequately and currently and must provide the capability for the member organization to be aware of its Net Capital and Net Capital Ratio on a moment to moment basis. DRAFT SUMMARY REPORT POTENTIAL OPERATIONAL AND FINANCIAL EXPOSURE AND RISK OF CAPITAL (This summary contains selected data set forth in Part I - additional data requested herein is to be completed based on instructions in Part III and related schedules in Part IIA - Do not submit schedules unless requested) 17. Subsidiary Capital Stock, Rule 325 value which has been approved by the Exchange (See Instruction 8) (from Schedule 27, Line 13). 18. Other credit items (from Schedule 25, Line 7) Tentative Net Capital (total of Lines 16 through 18) 19. STATEMENT OF COMPUTATION OF NET CAPITAL AND AGGREGATE INDEBTEDNESS (Continued) COMPUTATION OF AGGREGATE INDEBTEDNESS 25. 26. Liabilities included in Aggregate Indebtedness (from Regulatory Statement of Financial Amount of drafts immediate credit obtained related to customers (from Schedule Market value of securities borrowed (other than for delivery against customers' sales) for which no equivalent value is paid or credited 29. Line 1A) 27. 28. 29. Other additions to Aggregate Indebtedness (from Schedule 26, Line 3) Aggregate Indebtedness per Rule 325 (Total of Lines 25 through 28) NET CAPITAL, EXCESS NET CAPITAL AND RATIOS S 30. Required Net Capital per Rule 325 (Instruction 4): S indebtedness (Line 29) S or 6 2/3% of aggregate Net Capital in excess of (or less than) requirements (Line 24 less Line 30) . . Business expansion/reduction ratio (Line 29 to Line 24B) (See Rule 326). 35. Net Capital in excess of (or less than) requirements (Line 24 less Line 34) to maintain 12 to 1 ratio S 36. S 37. |