Regulations Governing Securities Firms Article 38

A securities firm accepting brokerage orders to trade securities shall establish a separate deposit account with a bank for paying and receiving settlement funds of the customer. The funds in that account shall not be used for other purposes.A securities firm may, with the consent of the customer, retain the customer's settlement funds in the securities firm's settlement account. The securities firm shall set up a separate account ledger for each customer in the settlement account, and record therein on a daily basis the itemized receipts and payments of funds, and shall retain the records. The securities firm may not utilize such funds except for making payments of funds payable on behalf of the customer or as otherwise provided by the FSC.