4757. Payment or delivery through client settlement agent

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    1. For any arrangement where the payment of securities purchased or delivery of securities sold is to be made to or through a client’s settlement agent, all of the following procedures must be followed:

      1. the Dealer Member receives from the client prior to or at the time of accepting the order the name and address of the settlement agent and account number of the client on file with the settlement agent. Where settlement is made through a depository offering an identification number system for the clients of settlement agents of the depository, the Dealer Member must have the client identification number prior to or at the time of accepting the order and use the number in the settlement of the trade,

      2. each order accepted from the client is identified as either a delivery or receipt against payment trade,

      3. the Dealer Member provides to the client a confirmation according to Rule 3800,

      4. the Dealer Member has obtained an agreement from the client stating that the client will:

        1. promptly provide its settlement agent with instructions regarding the transaction following its receipt of the transaction confirmation from the Dealer Member, or the relevant date and information as to each execution from the Dealer Member, relating to such order (even though such execution represents the purchase or sale of only a part of the order), and

        2. ensure that its settlement agent affirms the transaction no later than the next business day after the date of execution of the trade to which the confirmation relates,

        3. and

      5. the client and its settlement agent must use the facilities or services of CDS for the affirmation and settlement of all depository eligible transactions through such facilities or services including book based or certificated settlement. This clause 4757(1)(v) applies only to transactions:

        1. to be settled in Canada, and

        2. where both the Dealer Member and the settlement agent are participants of CDS or the same facilities or services of CDS required in respect of the trade.

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