The regulatory requirement that brokers hold client deposits in separate bank accounts, distinct from the firm’s own funds. This “segregated account” practice protects clients’ money if the firm fails or is liquidated. In many jurisdictions (e.g. FCA’s CASS rules, NFA’s 2-9 Forex rule, Australian RG 146), brokers must not commingle client funds with operational capital, ensuring client assets are safeguarded.

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