| InvestHub.com's Finance Dictionary and Glossary of Investment Terms customer protection Definition 1.
rule An SEC rule that requires broker/dealers to establish separate reserve accounts into which customer credit balances are maintained. The rule prohibits a firm from using customer balances to finance its own trading. The rule also requires firms to gain possession of customers' fully paid and excess margin securities promptly, and to segregate them properly. (See prompt receipt and delivery of securities) |
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