TRE certificate holders to segregate customer’s funds

KARACHI: The Pakistan Stock Exchange (PSX) made it mandatory for the Trading Right Entitlement (TRE) certificate holders to segregate customers’ funds and securities from their own funds, a statement said.

“Every TRE certificate holder is to ensure the protection of its customers’ funds and securities at all times and must refrain from comingling of its customers’ funds with its own funds by maintaining them in separate customer bank accounts,” a notice by PSX stated.

“The securities of the customers’ must be available in their separate CDC sub-accounts and match with the securities ledgers maintained in back office records of the TRE certificate holders along with reconciliation of any difference thereof,” it added.

According to the notice, no TRE certificate holder is allowed in any manner to use assets of the customers for its own or any others’ benefit, until it is authorized by the customer in writing and as permitted under the relevant laws.

It further added that the PSX has the mandate and power to verify through inspection, thematic reviews, and off-site monitoring to check if the TRE certificate holders are complying with the stated obligations.

The notice stated that any certificate holder found non-compliant with any of the aforesaid requirements will be subjected to disciplinary actions which may include suspension of trading terminal.

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