Become An Approved Broker or Dealer

How to Become an Approved Broker/Dealer

The Office of the Illinois State Treasurer manages an investment portfolio of approximately $31 billion. The Treasurer’s Office works with qualified broker-dealers that can execute trades and facilitate transactions using authorized investment instruments.

Firms must become approved broker/dealers before conducting business with the Treasurer’s Office. The steps below explain how to apply.

Before You Apply

To be considered, broker/dealers must meet certain eligibility requirements. Firms are reviewed based on creditworthiness and their financial significance in Illinois, which may include the location of the firm’s corporate office, number of full-time employees, payroll size, and overall economic presence in the state.

Eligible broker/dealers include primary dealers and regional dealers that qualify under SEC Rule 17 CFR § 15Cc3-1, Net Capital Requirements for Brokers or Dealers. Staff who execute trades must also be registered in the State of Illinois.

MWVD Preference

Visit the Equity, Diversity & Inclusion page for more info.

The Treasurer’s Office seeks to give preference to qualified broker/dealers that can demonstrate or attest that:

• More than 50% of the firm’s ownership is held by minority, female, veteran, and/or disabled persons; or
• More than 75% of the firm’s senior managers are minorities, women, veterans, and/or people with disabilities.

Firms seeking MWVD preference should complete and submit the following before beginning the application steps:

• Capabilities Questionnaire
• Diversity Profile Form
• One of the following:
  • MWVD State of Illinois Certification issued through CMS
  • Attestation Form claiming status as an MWVD-owned or managed firm
  • State or local government MWVD certification

Submit these documents to MWVD@illinoistreasurer.gov. After submission, the MWVD liaison will contact the firm with additional information.

Step 1: Review the Investment Policy Statements

Broker/dealers must independently review the Investment Policy Statements for:

• State Investments Portfolio
• Illinois Funds Local Government Investment Pool

This review helps ensure the firm’s investment products are consistent with the Treasurer’s policies.

After reviewing both policies, complete and submit the Certification Form to confirm that the firm has read and understands the Treasurer’s investment policy statements.

Step 2: Complete the Counterparty Questionnaire

Complete the Counterparty Questionnaire. This form collects basic information about the firm, including:

• Key personnel
• Financial presence in Illinois
• Ownership interests

This information helps the Treasurer’s Office assess potential business relationships.

Step 3: Complete the Diversity Profile Form

Complete the Diversity Profile Form (auto-download Excel). The Treasurer’s Office conducts an annual survey requiring business partners to disclose information about diversity within their organizations and describe how they promote diversity and inclusion.

Submit the completed documents from Steps 1 through 3 to RiskAnalysis@illinoistreasurer.gov.

Step 4: Respond to Requests for Additional Documentation

After reviewing the submitted materials, the Treasurer’s Office may follow up with additional instructions. An analyst may request one or more of the following:

• Proof of State of Illinois registration
• Proof of registration with the Securities and Exchange Commission
• Audited financial statements or a published Statement of Condition
• Information about insurance coverage, including the type and limit of coverage for customers in case of default or failure, such as SIPC, self-insurance, surety bonds, or errors and omissions coverage
• A statement confirming compliance with the SEC’s net capital adequacy guidelines, including compliance history, current status, SEC requirements, and current level
• Resumes for key traders

Step 5: Complete the Treasurer’s Financial Review

The Treasurer’s Office may independently verify all information submitted. The office may also request additional information before accepting a firm as a qualified counterparty.

The internal due diligence process typically takes six to eight weeks.

Step 6: Sign the Account Authorization Agreement

If the firm passes the internal review process, the Treasurer’s Office will notify the firm and provide an Account Authorization Agreement.

The agreement must be signed, submitted, and filed with both parties before the firm may attempt to execute a trade.

Step 7: Join the Approved Broker/Dealer List

After completing the approval process, the firm will be added to the Approved Broker/Dealer List.

The Treasurer’s Office conducts periodic financial reviews of all broker/dealers on the Approved List.

After Approval

Approved broker/dealers should review the Broker/Dealer Guidance form. This guide helps firms understand how to assist the Treasurer’s Office with investment brokerage services.

Changes to a broker/dealer’s status will be reflected on the Treasurer’s website.

The Treasurer’s Office may conduct due diligence visits to verify background information, confirm compliance with guidelines, review company operations, and discuss company initiatives.

Broker/dealers claiming MWVD-owned or managed status may be audited and may be required to provide documentation supporting that status.

For purposes of this process, definitions of “minority,” “female,” “veteran,” and “disabled person” are located in the Business Enterprise for Minorities, Females, and Persons with Disabilities Act (30 ILCS 575) and Sections 45-57 (“Veterans”) of the Illinois Procurement Code (30 ILCS 500/45-57).