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  • 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