4424. Clearing

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    1. A Dealer Member must promptly compare and balance its records with reports of the previous day’s settlements.

    2. Only employees who do not carry out trading functions may reconcile clearing or settlement accounts.

    3. A Dealer Member must take prompt action to correct differences in its records.

    4. A Dealer Member must regularly review aged “fails to deliver” and “fails to receive” and identify the reason for settlement delay.

    5. Any fail that continues for an extended period of time must be promptly reported to the Dealer Member’s appropriate Executives.

    6. A Dealer Member must not use a client account security position to settle a short “pro” sale unless it has obtained written permission from, and provided appropriate collateral to, the client pursuant to:

      1. a margin account agreement, or

      2. a cash and security loan agreement, 

    7. that has been executed in accordance with IIROC requirements.

    8. A Dealer Member must reconcile its records daily with clearing corporation and depository records to ensure they agree.

    There is no history log for this rule.

    There is no history log for this rule.