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4.34.4

Where a Trading Member is not authorised to allocate positions to an Authorised Account:

(a) The Trading Member shall instruct its qualifying Clearing Member to allocate the position of each trade executed by the Trading Member to the Trading Member's Position Account(s) or, where the position is of a trade executed for a customer, in accordance with that customer's instructions, as soon as practicable, and in any event no later than such time as may be required for timely and orderly settlement of such trade into the intended Securities Account.
(b) A customer's Position Account must only be used for that customer's positions. However, a Trading Member may instruct its qualifying Clearing Member to sub-allocate a position carried in a Position Account to another Position Account, provided that:
(i) (I) such sub-allocation is in accordance with the instructions of the account holders (or person(s) authorised to instruct on their behalf) of both Position Accounts; and (II) the Trading Member receives the booking instruction only after the position has been allocated to the originating Position Account; or
(ii) such sub-allocation is made to remedy an error.

Refer to Regulatory Notice 4.34.4 and 4.34.5.

Added on 3 June 20193 June 2019.