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Article NO. Content


Operating Rules for Custody and Investment of Funds by Securities Firms on Behalf of Customers  CH

Amended Date: 2015.03.31 
Categories: Securities Exchange Market > Borrowing of Money
Article 30     A securities firm using funds from the cash management account to engage in repo transactions may not enter into any new transaction with a counterparty whose credit rating no longer meets the requirement in Article 27. Notwithstanding the foregoing, if a repo transaction with the counterparty involves pooling of funds from two or more customers, as described in Article 31, and if the transaction is subject to early termination due to early termination of agreement by any of the customers involved, the securities firm may for and only for that transaction enter into a subsequent repo-style transaction agreement with the counterparty expiring on the same date as the original agreement.