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Article 34
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A securities firm using funds from the cash management account to engage in outright transactions or repo transactions may not use the underlying assets thus obtained for further outright sale to others, for further repo-style transactions, or for any other purposes.
A securities firm using funds from the cash management account to engage in outright transactions or repo transactions shall, in lieu of actually receiving and holding the underlying assets, only use a short-term bill passbook, central depository passbook, bond passbook, or repo-style transaction certificate, as the case may be, issued by a custodian institution; it may not withdraw any underlying asset in physical form.
When a securities firms uses funds from the cash management account to engage in transactions in eligible instruments with itself, the functions of associated persons performing clearing and settlement for those transactions may not be performed by associated persons performing clearing and settlement for proprietary trading operations for that business, and vice versa.
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