National Supervisory Authority & Licensing Qualification Dossier • North America
DFS
United StatesNew York State Department of Financial Services
Source / Native Reference: 纽约州金融服务部
- Supervisory tier
- Tier-1
- License classes
- 2
- Licensed records
- 2
- Active / regulated
- 2
Statutory Supervisory Mandate & Scope
New York State Department of Financial Services (NYDFS) (DFS) is the Tier-1 statutory financial markets and securities supervisory authority in United States (New York). It grants and supervises financial services licences across broker-dealers, investment advisers, asset managers, and market operators, enforcing initial and ongoing prudential capital requirements, segregated client asset rules, market conduct standards, and public register disclosures.
Prudential Tier Assessment
Tier-1Tier-1 national capital markets, securities, and derivatives supervisory authority in United States, IOSCO member standards-aligned.
National licensing qualifications & statutory authorisation classes (DFS)
Authorisation categories, permitted institutional and retail activities, minimum initial capital adequacy, and ongoing prudential solvency rules enforced by DFS in United States.
| License class / code | Official designation | Permitted institutional & retail activities | Minimum initial / base capital | Ongoing prudential & solvency rule |
|---|---|---|---|---|
| Category 1 / Principal Broker-Dealer | Full-Scope Securities & Derivatives Dealer (Market Maker / Principal) | Dealing as principal or market maker in securities, FX, CFDs, futures, options, and underwriting. | USD $500,000 – $1,000,000+ (or EUR €750,000) minimum regulatory capital | Risk-weighted capital adequacy + minimum liquid capital buffer ≥ 25% of annual fixed overheads. |
| Category 2 / Agency Broker & Asset Manager | Securities Brokerage (Agency / STP) & Discretionary Portfolio Management Licence | Order execution, reception and transmission of client orders, discretionary portfolio management, and investment advisory. | USD $150,000 – $250,000 (or EUR €150,000) minimum base capital | Strict client money segregation, best-execution monitoring, and quarterly regulatory financial returns. |
Investor compensation, client money segregation & digital-asset regime
Statutory counterparty protections, custody reconciliation mandates, and virtual-asset licensing status under DFS.
National Investor Protection / Compensation Scheme (United States)
- Maximum coverage per client
- EUR €20,000 – USD $100,000+ equivalent per eligible retail investor
- Eligible counterparties & scope
- Retail clients of licensed securities and investment brokerage firms.
DFS Client Money & Safe Custody Segregation Rules
- Reconciliation & audit cadence
- Daily reconciliation of segregated client trust bank accounts against client trading ledger balances.
- Approved custodian requirements
- Client funds and securities must be held in bankruptcy-remote statutory trust accounts at licensed commercial banks or central securities depositories.
DFS Digital Asset / Tokenized Securities & VASP Regulatory Framework
- Travel Rule, custody & stablecoin rules
- FATF Recommendation 16 Travel Rule enforcement and institutional qualified custody standards.
Primary Governing Statutes & Rulebooks
- Securities and Capital Markets Act of United States
- DFS Licensing, Prudential Capital Adequacy & Conduct of Business Rules
- Client Money & Custody Asset Segregation Regulations (United States)
- IOSCO Principles of Securities Regulation & National AML/CFT Rulebook
Regulatory Reporting & Audit Obligations
Quarterly capital adequacy returns and annual IFRS audited financial statements submitted to DFSAnnual independent auditor attestation on Client Money and Safe Custody complianceTransaction reporting, market abuse surveillance (MAR), and AML/CFT suspicious activity reporting
Cross-Border Equivalence & Passporting
Operates under United States national jurisdiction and IOSCO MMoU cross-border supervisory cooperation.
Supervised institutions & DFS licence records in our database
2 licence records referencing DFS (2 regulated/registered).
| Institution | Licence number | Status | Licensed legal entity | Effective date | Verification |
|---|---|---|---|---|---|
| The Bank of New York Mellon(Global network record) | Number pending check | Regulated | The Bank Of New York Mellon | — | |
| IDB Bank(Global network record) | Number pending check | Regulated | Israel Discount Bank of New York | — |
DFS (United States): institutional licensing & due diligence FAQ
Key statutory capital, compensation, custody segregation, and verification answers for compliance teams.
What are the primary licensing classes and minimum capital requirements under DFS (United States)?
DFS (New York State Department of Financial Services) supervises financial institutions in United States under Securities and Capital Markets Act of United States and DFS Licensing, Prudential Capital Adequacy & Conduct of Business Rules. Key statutory authorisation classes include: Category 1 / Principal Broker-Dealer (Full-Scope Securities & Derivatives Dealer (Market Maker / Principal) — min. capital: USD $500,000 – $1,000,000+ (or EUR €750,000) minimum regulatory capital); Category 2 / Agency Broker & Asset Manager (Securities Brokerage (Agency / STP) & Discretionary Portfolio Management Licence — min. capital: USD $150,000 – $250,000 (or EUR €150,000) minimum base capital). Ongoing prudential supervision requires strict adherence to capital adequacy and liquidity buffers.
Does DFS provide statutory investor compensation and mandatory client asset segregation?
Under DFS's framework, investor protection is governed by National Investor Protection / Compensation Scheme (United States) with maximum coverage of EUR €20,000 – USD $100,000+ equivalent per eligible retail investor (Retail clients of licensed securities and investment brokerage firms.). For client money and custody assets, supervised firms must comply with DFS Client Money & Safe Custody Segregation Rules, performing daily reconciliation of segregated client trust bank accounts against client trading ledger balances. with client funds and securities must be held in bankruptcy-remote statutory trust accounts at licensed commercial banks or central securities depositories..
How does DFS regulate digital assets, crypto exchanges (VASPs/CASPs), and stablecoins?
DFS's digital-asset regime is structured around DFS Digital Asset / Tokenized Securities & VASP Regulatory Framework (Regulates security tokens, crypto derivatives, and licensed digital asset intermediaries in United States.). Custody and AML/CFT compliance obligations require: FATF Recommendation 16 Travel Rule enforcement and institutional qualified custody standards.
How can I verify an institution's DFS licence number and check our 2 recorded licence entries?
Our database currently tracks 2 licence records referencing DFS (2 marked regulated or registered). To verify a counterparty at the primary source, open DFS's official public register (https://www.dfs.ny.gov/), search by the exact reference number and legal entity name, and confirm that the firm's domain and permitted activities match its statutory authorisation.
Related regulatory & market structure briefings
Research and compliance analysis from QuantCalc Tools relevant to DFS and United States.
Quantitative Risk & Capital Modeling
Basel III Endgame FRTB & ISDA SIMM v2.6+ Quantitative Calibration: Expected Shortfall, Non-Modellable Risk Factors (NMRF), and Cross-Margin Capital Optimization (2026)
Complete quantitative specification of BCBS MAR20-MAR33 Fundamental Review of the Trading Book (FRTB), 97.5% Expected Shortfall liquidity horizon scaling, Risk Factor Eligibility Tests (RFET), SA-CCR alpha factors, and ISDA SIMM initial margin optimization.
Quantitative Pricing & Options Engines
NY Fed SOFR Index ACT/360 In-Arrears Compounding Engine: Cross-Margining & Capital Efficiency Optimization (4.4151% 90-Day Annualized Benchmark)
NY Fed SOFR Index ACT/360 In-Arrears Compounding Engine (SOFR-INDEX-ACT360) stands at 4.4151% (90-Day Annualized) (Source: NY Fed Reference Rates, 2026-10-20), governing inter-commodity correlation offsets and liquidity
Risk-Adjusted Performance Benchmarks
NY Fed SOFR Index ACT/360 In-Arrears Compounding Engine: Model Risk Management (SR 11-7) Validation Benchmarks (4.4151% 90-Day Annualized Benchmark)
NY Fed SOFR Index ACT/360 In-Arrears Compounding Engine (SOFR-INDEX-ACT360) stands at 4.4151% (90-Day Annualized) (Source: NY Fed Reference Rates, 2026-10-20), governing backtesting Kupiec POF exceptions and Christoffers
Fixed Income Duration & Portfolio Risk
CME SPAN 2 Historical & Stress Value-at-Risk (VaR) Model: Cross-Margining & Capital Efficiency Optimization (6.26% Initial Margin / Notional Benchmark)
CME SPAN 2 Historical & Stress Value-at-Risk (VaR) Model (CME-SPAN2-VAR) stands at 6.26% (Initial Margin / Notional) (Source: CME Clearing, 2026-10-20), governing inter-commodity correlation offsets and liquidity add-on
Statutory licensing classes, base capital rules, and investor protection summaries for DFS (United States) are maintained for institutional benchmarking and do not constitute legal advice. Always verify current rulebooks and active firm authorisations directly on DFS’s official public register.