A securities firm conducting business relating to custody and investment of funds on behalf of customers shall, when the funds held in custody in the cash management account reach the minimum investment level as agreed with a customer, make use of the funds for such type of subject instrument as specified by the customer, in the name of "_______ Securities Firm's Customer Cash Management Account."
A securities firm may invest funds under the preceding paragraph only in subject instruments falling within the following scope:
- Treasury bills with a maturity of ten or less days, negotiable certificates of deposit, and commercial papers.
- Government bonds with a maturity of ten or less days.
- Repo transactions in three instruments, namely treasury bills, negotiable certificates of deposit, and commercial papers.
- Repo transactions in government bonds.
- Repo transactions in exchange-listed or OTC-listed straight corporate bonds and general bank debentures.
- Money market funds.
- Quasi-money market funds within the category of bond funds.
- Any other subject instrument as approved by the competent authority.
The term "general bank debentures" under the preceding paragraph shall have the same meaning as set forth in the Regulations Governing Issuance of Bank Debentures By Banks.
The issuer, guarantor, acceptor, or underlying of the negotiable certificates of deposit or commercial papers under paragraph 2, subparagraph 1 or 3 shall have a short-term credit rating at or above a prescribed level from a credit rating agency as listed in Appendix 2.
The issuer or underlying of the exchange-listed or OTC-listed straight corporate bonds or general bank debentures under paragraph 2, subparagraph 5 shall have a long-term credit rating at or above a prescribed level from a credit rating agency as listed in Appendix 3.