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  • CSD-3.7 CSD-3.7 Specific Obligations of a Clearing House

    • Customers' Money and Assets Held by Licensed Clearing House

      • CSD-3.7.1

        Every licensed clearing house may accept money or assets deposited with or paid by its members in respect of or in relation to the market contracts of the customers of such members.

      • CSD-3.7.2

        A licensed clearing house, which accepts assets or money deposited with or paid to it by its members in respect of or in relation to contracts of the customers of such members, shall require each of its members to notify it in such manner as it may determine:

        (a) Whether a market contract is a contract of a customer of the member which has been cleared and settled by the member; and
        (b) Whether the money or assets being deposited with or paid to the licensed clearing house is, or are deposited or paid in respect of, or in relation to, a contract of a customer of the member.

      • CSD-3.7.3

        Where a member has notified the licensed clearing house under rule CSD-3.7.2 that the money or assets are deposited or paid in respect of, or in relation to a contract of a customer of the member, the licensed clearing house shall:

        (a) Account for all such money and assets on an aggregated basis, separate from all other money and assets received by the licensed clearing house from the member; and
        (b) Subject to Paragraphs CSD-3.8.1 and CSD-3.8.2, ensure that such money is deposited in a trust account, or such assets are deposited in a custody account, to be held for the benefit of the customers of the member and disposed of or used only in respect of or in relation to contracts of customers of the member.
        Amended: April 2016

    • Daily Computation of Customers' Money and Assets

      • CSD-3.7.4

        A licensed clearing house shall, at such intervals as the licensed clearing house determines appropriate, but no less frequently than once each business day, compute the total amount of customers' money and assets held by the licensed clearing house, including money that has been kept by the licensed clearing house.

      • CSD-3.7.5

        Any computation referred to in rule CSD-3.7.4 shall be completed no later than the commencement of the following trading session and shall be kept by the licensed clearing house together with all supporting data.

      • CSD-3.7.6

        For the purpose of this Module, a "business day" refers to any day in which the licensed clearing house is open for business.

    • Verification of Money and Assets Placed with Licensed Clearing House

      • CSD-3.7.7

        A licensed clearing house shall require its auditors to submit to the CBB a report within 3 months of the financial year-end or such other time as the CBB may require:

        (a) Certifying that the money and assets deposited by a member with the licensed clearing house in respect of, or in relation to, a contract of a customer of the member are:
        (i) Segregated from the other money and assets deposited by the member with the designated clearing house;
        (ii) Deposited in a trust account or custody account and are not combined with the money and assets of the licensed clearing house;
        (iii) Used as permitted under or in accordance with Section CSD-3.8; and
        (b) Setting out the amount, on an aggregated basis, of all money and assets deposited by the member with the licensed clearing house:
        (i) In respect of, or in relation to, a contract of a customer of the member; and
        (ii) In respect of, or in relation to, any other market contract.
        Amended: January 2022
        Amended: April 2016

      • CSD-3.7.8

        The business rules must support the segregation of customer assets or other arrangements for prioritizing claims in bankruptcy that serve to protect customers' holdings.

        Amended: April 2016

      • CSD-3.7.9

        The licensed central depository must enforce effective segregation of customer assets by custodians.

        Amended: April 2016