2402. Definitions

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    1. The following terms have the meaning set out below when used in sections 2402 through 2480:

      “clearing arrangement”

      An arrangement entered into between two dealers under which all of the following services are provided by one dealer (“clearing broker”) to the other dealer for one or more lines of business:

      1. trade execution,
      2. trade settlement, and
      3. client account bookkeeping.

      Trade financing or account financing, custody of client cash and custody of client security positions services must not be provided as part of this arrangement.

      “introducing broker / carrying broker arrangement”

      An arrangement entered into between two dealers under which all of the following services are provided by one dealer, the carrying broker, to the other dealer, the introducing broker, for one or more lines of business:

      1. trade settlement,
      2. custody of client cash,
      3. custody of client security positions, and
      4. client account bookkeeping.

      Trade execution and trade financing or account financing services may or may not be provided as part of this arrangement.

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    There is no history log for this rule.