22.—(1) All customer’s moneys shall be segregated as belonging to customers and separately accounted for.| (2) Any customer’s moneys received shall be paid without delay into a customer’s account unless authorised otherwise by the customer concerned. |
(3) Every commodity broker, commodity futures broker, spot commodity broker, commodity pool operator and commodity futures pool operator shall maintain accounts in such a way that the outstanding balance can be easily and readily identified with —| (a) | each customer’s transaction; and | | (b) | the respective dates on which each transaction occurred. |
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(4) Every commodity broker, commodity futures broker, spot commodity broker, commodity pool operator and commodity futures pool operator shall at all times keep such books and accounts as may be necessary —| (a) | to show all his dealings with all his customer’s moneys held, received or paid by him, and any other money dealt by the broker or pool operator through his customers’ accounts; | | (b) | to distinguish such money held, received or paid by him on account of every customer; and | | (c) | to distinguish such money from his own money or other money held, received or paid by him on any other account. |
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| (5) All customers’ moneys when deposited with any bank, merchant bank, a commodity broker, commodity futures broker, spot commodity broker or any other person approved by the Board, shall be deposited under an account name which clearly identifies such moneys as customers’ moneys and shows that such moneys are segregated in the manner required under regulation 21. |
| (6) Every commodity broker, commodity futures broker, spot commodity broker, commodity pool operator and commodity futures pool operator shall obtain and retain in his files acknowledgment from such bank, merchant bank, such other commodity broker, commodity futures broker, spot commodity broker or such other person approved by the Board, that he was informed that the customer’s moneys deposited therein belong to customers and are being held in accordance with these Regulations. |
(7) A commodity broker, commodity futures broker or spot commodity broker may hold any of his customers’ moneys in any of the following forms:| (a) | in any Government securities within the meaning of the Government Securities Act (Cap. 121A); | | (b) | in any debt instruments of the government of the country in which is situated the commodity market, commodity futures market or Commodity Futures Exchange where the commodity broker, commodity futures broker or spot commodity broker normally transacts his business; and | | (c) | in any other securities or instruments as may be approved by the Board. |
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| (8) A commodity broker, commodity futures broker or spot commodity broker holding any of his customers’ moneys other than in a form of deposit with a bank or merchant bank shall keep a record of such accounts. |
(9) The record referred to in paragraph (8) shall include the following:| (a) | the dates of all transactions made; | | (b) | the names of the persons through whom the transactions were made; | | (c) | the amount of money involved in each transaction; | | (d) | a description of each transaction; | | (e) | the place, if any, where each customer’s moneys, securities and properties are being kept; | | (f) | the date on which the subject-matter of each transaction was released or otherwise disposed of and the amount of money received from each realisation or disposition, if any; and | | (g) | the name of the person to whom (and through whom, if any) the subject-matter of each transaction was disposed of. |
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| (10) All securities and properties held or received by a commodity broker, commodity futures broker, spot commodity broker, commodity pool operator or commodity futures pool operator, on account of a customer in connection with any commodity contracts, commodity futures contracts or spot commodity contracts concluded or to be concluded, or cleared or to be cleared, on any commodity market, commodity futures market, spot commodity market or a Commodity Futures Exchange, shall be separately accounted for and segregated as belonging to the customer. |
(11) Every commodity broker, commodity futures broker, spot commodity broker, commodity pool operator or commodity futures pool operator shall at all times keep such books and accounts as may be necessary —| (a) | to show all his dealings with customers’ securities and properties held or received by him; | | (b) | to distinguish such securities and properties held or received by him on account of each customer; and | | (c) | to distinguish such securities and properties from his own securities and properties and other securities and properties held or received by him. |
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(12) Every commodity broker, commodity futures broker and spot commodity broker shall compute as at the close of each business day —| (a) | the total amount of customer funds on deposit in segregated accounts on behalf of customers; | | (b) | the total amount of such customer funds required by the Act and these Regulations to be kept in deposit in segregated accounts on behalf of such customers; and | | (c) | the amount of his residual interest in such customer funds, |
| and such computation must be completed prior to noon on the next business day and must be kept, together with all supporting data. |
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