Document ID: chunk:federal_register_of_legislation:F2024C01109:front:0:p22
Version: federal_register_of_legislation:F2024C01109
Segment Type: other
Provision Reference: 
Character Range: 56921–59933

in accordance with the specific direction of a Client.
(i)         Monies invested
Where a Market Participant invests money from a Clients' segregated account then:
(i)         the Market Participant must, prior to investing any amount, obtain the Client's written agreement to the following matters:
(A)      the making of the investment;
(B)      how earnings on the investment are to be dealt with;
(C)      how the realisation of the investment is to be dealt with;
(D)      how any losses made on the investment are to be dealt with; and
(E)       the fee (if any) that the Market Participant proposes to charge for the investment; and
(ii)       such investment must be readily realisable and no less than 50% of monies invested must be on 24-hour call.
        (j)         Separation of Market Participants' trading liabilities from Clients' trading liabilities
A Market Participant must not use a Clients' segregated account to meet any Initial Margin or Variation Margin liabilities which relate to trading by that Market Participant on its own behalf or on behalf of a related corporation.
(k)       Accounting records for withdrawals
A Market Participant must at all times maintain such accounting records as accurately indicate each withdrawal from a Clients' segregated account.
(l)         Definition of Client
For the purposes of this Rule, Client excludes a related body corporate or a division of the Market Participant.
(m)      Property
(i)         For the purposes of paragraph (m), property includes credit facilities and securities.
(ii)       On the receipt of property, a Market Participant must:
(A)      deposit the property in safe custody on or before the next business day after the property is received or deposited;
(B)      create and maintain the following records:
(I)        date property received/deposited in safe custody; and
(II)      particulars of the property so deposited.
(iii)     A Market Participant must keep Client property segregated from the Market Participant's own property and Market Participants must be able to liquidate Client property as soon as practicable when required.
(iv)      A Market Participant must not use property held in safe custody to satisfy a Market Participant's debt.

2.2.7 Mandatory recording of information by Market Participants
(1) Recording by Market Participant
(a)        A Market Participant dealing with Clients must record, via telephone lines and/or other electronic device, at its own expense, all conversations with Clients and other parties relating to Client instructions.
(b)       A Market Participant must ensure that internal desks transmit all Orders to the futures desks in such a way that instructions are recorded via a telephone line or other electronic device.
(c)        Should circumstances arise where a Client has placed instructions in a manner where there is no electronic or other record, a Market Participant must ensure that the Client's instructions are recorded in some manner.
(d)       Recordings