Note 17 - Regulatory Requirements

3 Months Ended

Mar. 31, 2019

Notes to Financial Statements

Regulatory Capital Requirements under Banking Regulations [Text Block]

17

. Regulatory Requirements

JMP Securities is subject to the SEC

’s Uniform Net Capital Rule (Rule 

15c3

-

1

), which requires the maintenance of minimum net capital, as defined, and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall

not

exceed

15

to

1.

JMP Securities had net capital o

f

$22.5

 

million and

$29.8

 million, which wer

e

$21.5

 

million and

$28.7

 million in excess of the required net capital

of 

$1.0

 m

illion and

$1.1

 million at

March 31, 2019 

and

December 31, 2018,

respectively. JMP Securities’ ratio of aggregate indebtedness to net capital was

0.48

 to 

1

and

0.57

to

1

at

March 31, 2019 

and

December 31, 2018,

respectively.

Since all customer transactions are cleared through another broker-dealer on a fully disclosed basis, JMP Securities is

not

required to maintain a separate bank account for the exclusive benefit of customers in accordance with Rule

15c3

-

3

under the Exchange Act.