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If you actually had a cash-only designated account, would the broker still have to pull from their own cash reserves to make the trade?
by platz 6y ago
If you actually had a cash-only designated account, would the broker still have to pull from their own cash reserves to make the trade?
- millimeterman 6y agoYes, I believe they would.
- jacobajit 6y agoWhat is the reasoning for this rule?
- millimeterman 6y agoHonestly, I haven't been able to find any good sources for the reasoning. It seems like it emerged as part of Dodd-Frank after the 2008 financial crisis, but almost no one is talking about why specifically the rule was enacted. My best guess is that it might be to help protect users' money from being put at risk by a malicious/incompetent brokerage.