Customer Free Credit Balances
A free credit balance is a credit in a customer’s account that is not invested in anything. This is a cash balance that may accrue from sales of securities, dividends, interest, deposits, or otherwise. Free credit balances are considered liabilities of a broker or dealer to customers that are subject to immediate cash payment on demand. According to Rule 15c3-2 free credit balances must be segregated from the rest of the firm’s accounts unless the firm discloses its intent to use them, and affirms that they will