What Is the Maximum Percentage of Client Assets That Can Typically Be Rehypothecated under US Regulations?
Under US SEC Rule 15c3-3, a broker-dealer is generally permitted to rehypothecate up to 140 percent of the customer's net debit balance in a margin account. This limit is designed to prevent excessive reuse of client assets.
Assets that are fully paid for or held in a cash account cannot be rehypothecated at all, providing a layer of protection for the client's core capital.
