Texas broker-dealer Hext Capital Partners and its owner and chief executive officer, Gregory Hext, have agreed to pay $60,000 to settle allegations that the firm violated the net capital requirements of the Securities Exchange Act.
The net capital rule requires broker-dealers to have sufficient liquid assets to meet their obligations to customers and other parties, and to shut down in an orderly fashion if the business fails. Firms must engage in calculations regularly to determine if their assets meet the minimum amounts required under the rule. The minimum amount must be met at all times.
