Segregation of customer’s funds by commodity futures brokers
22.—(1)  Subject to this regulation, every commodity futures broker shall —
(a)treat and deal with all money, securities or property received by him from a customer to margin, guarantee or secure contracts in commodity futures trading, or accruing to a customer as a result of such trading, as belonging to that customer; and
(b)account in a separate trust account, designated or evidenced as such, for all the money, securities or property received from the customer or accruing to the customer pursuant to sub-paragraph (a),
and shall not commingle that money, security or property with the funds of the commodity futures broker or use them to margin, guarantee or to secure the contracts or extend the credit of any customer or person other than the person for whom they are held.
(2)  Notwithstanding paragraph (1), the money, securities or property received by a commodity futures broker from his customers may, for convenience and for the benefit of his customers, be commingled and deposited in the same account or accounts with —
(a)any bank;
(b)a clearing house, whether in or outside Singapore;
(c)another commodity futures broker; or
(d)any person who may be approved by the Board for the purpose.
(3)  Subject to regulation 23, a commodity futures broker shall not withdraw money received by him and deposited in a separate trust account pursuant to paragraph (1), otherwise than for the purpose of —
(a)making a payment to, or in accordance with the instructions of, a person entitled to the money;
(b)purchasing, margining, guaranteeing, securing, transferring, adjusting or settling dealings in futures contracts effected by the broker on the instructions of a customer of the commodity futures broker;
(c)defraying brokerage and other proper charges incurred in respect of dealings in commodity futures contracts effected by the commodity futures broker on the instructions of a customer of the broker;
(d)reimbursing himself to the extent of any residual financial interest that he may have in the account as is mentioned in paragraph (4);
(e)investing the money in such manner as may be prescribed; or
(f)making a payment that is otherwise authorised by law.
(4)  Notwithstanding paragraph (1), a commodity futures broker may have a residual financial interest in a customer’s trust account and from time to time may advance from his own funds sufficient money to prevent any or all customers’ trust accounts from becoming under-margined.
(5)  The Board may exempt a commodity futures broker or any class of brokers or any transaction or class of transactions relating to trading in futures contracts from the requirements paragraph (1) subject to such terms and conditions as in the opinion of the Board provides reasonable protection for customers.