Segregation of client funds and securities enshrined, imposing separate accounts and timelines for delivery and close-out rights. The amendment requires member brokers to maintain separate bank accounts and distinct books of account for client monies and their own funds, depositing client monies into accounts titled with the word 'clients'; specifies what may be paid into and withdrawn from clients' accounts while preserving members' rights such as lien and set-off; mandates segregation and recordkeeping for client securities including those held for sale, pending delivery, transfer, and as margin; sets timelines for delivery and payment and requires issuance of contract notes within twenty-four hours; and authorises members to close out client positions for payment or delivery failures with losses met from the client's margin.
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Provisions expressly mentioned in the judgment/order text.
Segregation of client funds and securities enshrined, imposing separate accounts and timelines for delivery and close-out rights.
The amendment requires member brokers to maintain separate bank accounts and distinct books of account for client monies and their own funds, depositing client monies into accounts titled with the word "clients"; specifies what may be paid into and withdrawn from clients' accounts while preserving members' rights such as lien and set-off; mandates segregation and recordkeeping for client securities including those held for sale, pending delivery, transfer, and as margin; sets timelines for delivery and payment and requires issuance of contract notes within twenty-four hours; and authorises members to close out client positions for payment or delivery failures with losses met from the client's margin.
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