What are the requirements for clearing firms to report allocations to average price accounts of an Introducing Broker that may be exclusively for a specific client of the Introducing Broker?
In Phase 2c, allocations to an average price account that is held either in the name of a specific client of the Introducing Broker or is associated in the clearing firm’s systems with a specific client of the Introducing Broker are required to be reported to CAT. The allocationType for these allocations may be marked as ‘CUS’ (Allocation to a custody account) or ‘DVP’ (Allocation to a DVP/RVP accounts).
Starting in Phase 2d, Industry Members may choose to optionally report these allocations. If optionally reported, the allocationType field must be populated with ‘FRM’ (An allocation to a firm owned or controlled account).