MBSD clearing applicants must meet the minimum financial requirements set forth in the MBSD’s Rules in order to be admitted into membership. The required levels must be maintained as a condition of membership on an on-going basis. The minimum financial standards established are designed to ensure that each member has the financial condition and performance necessary to meet its obligations as an MBSD clearing member. The objective of the financial criteria is to establish minimum standards to protect against credit risk as well as potential reputational risk that could occur should a member fail.