Client money
Client money is money a firm receives or holds for a client in the course of business covered by the FCA's client-money rules.
Explanation
The glossary definition used in CASS 7 covers money a firm receives or holds for a client in its MiFID business, or holds for a client in designated investment business that is not MiFID business, and money the firm treats as client money under the rules. CASS 7.10 says the chapter applies when a firm receives or holds client money in MiFID business or designated investment business, among other cases, and it ties the rules to Principle 10 on protecting client assets. Client-money segregation is about how the firm holds the money. It does not stop a trading loss, and it is not negative balance protection. Money posted as margin can still be lost if the position loses.
This page explains published terms for education and reference. It is not financial, investment, tax, or trading advice, and it does not recommend a firm, product, or strategy.
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Sources and last check
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