4367. Records — reconciliation

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    1. If a Dealer Member reconciles its records to an issuing mutual fund’s or financial institution’s monthly files or statements in accordance with section 4361, the Dealer Member must provide margin based on the requirements in Form 1, Statement B, Line 22, Notes and Instructions for any unresolved differences.

    2. If a Dealer Member does not reconcile its records with files or statements received from mutual funds, or financial institutions for evidences of deposit, it must:

      1. in determining its risk adjusted capital, deduct as a margin requirement for unresolved differences an amount equal to:

        1. 10% of the market value of the securities, where there have been no transactions in the securities, other than redemptions and transfers, for at least six months and no loan value has been given on the securities, or

        2. 100% of the market value of the securities,

      2. and

      3. undertake to borrow or buy-in the position pursuant to section 4368.

    There is no history log for this rule.