16 Net Capital Requirements
As registered broker-dealers and NASD member firms, Knight and Trimark are subject to the SEC's Uniform Net Capital Rule (the "Rule") which requires the maintenance of minimum net capital. Knight and Trimark have elected to use the basic method, permitted by the Rule, which requires that they each maintain net capital equal to the greater of $1.0 million or 6 2/3% of aggregate indebtedness, as defined.

At December 31, 1999, Knight had net capital of $246,772,665, which was $242,780,739 in excess of its required net capital of $3,991,926, and Trimark had net capital of $39,673,991, which was $38,520,006 in excess of its required net capital of $1,153,985.