4425. Protecting securities

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    1. A Dealer Member must assess the risk of any securities location that holds securities for it and for the accounts of its clients.

    2. A Dealer Member’s processing controls must separate duties for recording entries from duties for initiating transfers on depository records (for instance, transfers between the “free” and “seg” boxes).

    3. At least monthly, a Dealer Member must reconcile its records of security and other asset positions to the custodian’s records where securities are held. The Dealer Member must investigate differences and make appropriate adjustment entries as necessary.

    4. A Dealer Member must have a proper written custody agreement with each custodian where securities are held.

    There is no history log for this rule.

    There is no history log for this rule.