Regulatory Requirements

6 Months Ended

Jun. 30, 2017

Regulatory Capital Requirements [Abstract]

Regulatory Requirements

Regulatory Requirements

CSS, a registered broker-dealer in the U.S., is subject to the SEC’s Uniform Net Capital Rule 15c3-1 (the Rule), which requires that broker-dealers maintain a minimum level of net capital, as prescribed by the Rule. As of June 30, 2017, CSS had net capital of approximately $3,859,000, which exceeded its requirements by approximately $3,662,000. The Rule also provides that equity capital may not be withdrawn or cash dividends paid if the resulting net capital of a broker-dealer is less than the amount required under the Rule and requires prior notice to the SEC for certain withdrawals of capital.

CSS does not carry customer accounts and is exempt from SEC Rule 15c3-3 pursuant to provisions (k)(1) and (k)(2)(i) of such rule.

CSAL and CSUK are regulated outside the U.S. by the Hong Kong Securities and Futures Commission and the United Kingdom Financial Conduct Authority, respectively. As of June 30, 2017, CSAL and CSUK had aggregate regulatory capital of approximately $76,290,000, which exceeded aggregate regulatory capital requirements by approximately $72,376,000.