Pursuant to Rule 17a-5(d), promulgated under the

Pursuant to Rule 17a-5(d), promulgated under the Securities Exchange Act of 1934 ("the Act"), all broker-dealers are required to file annually audited financial statements ("Annual Audit") with their Designated Examining Authority, and the Securities and Exchange Commission ("SEC"), no more than 60 days after the date of the year end financial statements.

Pursuant to Securities Exchange Act Rule 17a-11, if a firm falls below 120% of its capital requirement and/or its books and records, notification must be sent to the Securities and Exchange Commission in Washington, D.C. and Philadelphia, PA (or the firm's regional SEC office), as well as to the firm's Designated Examination Authority (DEA).

 All broker dealers are required to use accrual accounting and thus accrue for all payables of the broker dealer. This includes  exchange or clearing firm bills, and all other bills and liabilities incurred by a broker dealer. Comparing firm assets to liabilities on a daily basis will assist members in evaluating their net worth, as well as general compliance with net capital or net liquid asset requirements.

Broker Dealers are required to maintain all books and records as required under Securities Exchange Act Rules 17a-3 and 17a-4, and PHLX Rule 760.

Rule 760. Maintenance, Retention and Furnishing of Books, Records and Other Information

Every member and member organization shall make, keep current and preserve such books and records as the Exchange may prescribe and as may be prescribed by the Securities Exchange Act of 1934 and the rules and regulations thereunder. No member or member organization shall refuse to make available to the Exchange such books, records or other information as may be called for under the rules or as may be requested in connection with an investigation by the Exchange.

Adopted.

March 26, 1980.

I am beginning to get a good picture of the magnitude of the broker / clearing house.