SECP Amends Futures Exchanges (Licencing and Operations) Regulations 2017.
The Securities and Exchange Commission of Pakistan (SECP) has tight rules for handling futures brokers' and customers' money and assets.
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On Wednesday, SECP S.R.O. 1913 (I)/2022 revised Futures Exchanges (Licencing and Operations) Regulations 2017.
The updated regulations said that the futures exchange shall open one or more designated bank accounts with a scheduled bank in Pakistan for depositing money belonging to futures brokers and their customers in such form and manner as may be determined by the exchange from time to time.
The futures exchange must use futures brokers' and clients' assets legally.
The futures exchange must keep records of all amounts deposited into and paid from the designated bank accounts on behalf of each futures broker and customer and ensure that their assets do not become part of its assets.
The futures exchange will record each futures broker and customer's identity and balance.
If unutilized funds of futures brokers or their customers are held in a profit-bearing bank account, pass on profit earned on these funds to the futures broker and their customers in proportion to their unutilized balance unless specified otherwise in writing by the futures broker or customer, after contributing to the settlement guarantee fund at the Commission-approved rate and deducting a service fee at the Commission-approved maximum rate.
SECP revised regulations stated that before deducting the service fee, the futures exchange currently using any portion of profits on unutilized funds of futures brokers or their customers for any other purpose other than permitted shall gradually phase-out such an amount in equal proportion until June 30, 2025.
