segregation

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Segregation

The practice of broker-dealers keeping securities for which a client has paid in full separate from securities the client has purchased on margin as well as from securities used as collateral on a margin account. Rule 15c3-3 requires segregation of these securities.

segregation

The safekeeping of a customer's securities in a separate location when the securities have been paid for in full. Segregated securities may not be commingled with the securities of the broker-dealer and they may not be used by the broker-dealer to collateralize loans. See also Rule 15c3-3.
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