Segregation of customer’s funds by brokers
21.—(1)  Every commodity broker and spot commodity 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 trading or spot commodity 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 his own funds or use them to margin, guarantee or to secure the contracts or extend the credit of any other 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 broker or spot commodity 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 broker or spot commodity broker; or
(d)any person who may be approved by the Board for the purpose.
(3)  Subject to regulation 22, a commodity broker or spot commodity broker shall not withdraw money received by him and deposited in a separate trust account as referred to in 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 commodity contracts or spot commodity contracts effected by the broker on the instructions of a customer of the broker;
(c)defraying brokerage and other proper charges incurred in respect of dealings in the commodity contracts or spot commodity contracts effected by the 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 referred in paragraph (4);
(e)investing the money in such manner as may be permitted under these Regulations or otherwise by the Board; or
(f)making a payment that is otherwise authorised under law.
(4)  Notwithstanding paragraph (1), a commodity broker or spot commodity broker may have a residual financial interest in a customer’s trust account and may from time to time advance from his own funds sufficient money to prevent any or all of his customers’ trust accounts from becoming under-margined.
(5)  The Board may exempt a commodity broker, spot commodity broker, or any class of brokers or any transaction or class of transactions relating to trading in commodity contracts or spot commodity contracts from the requirements in paragraph (1), subject to such terms and conditions as, in the opinion of the Board, provides reasonable protection for customers.