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Why Is the Segregation of the Insurance Fund Important for Regulatory Purposes?

It ensures the fund is used only for contract losses, prevents misuse for operational expenses, and protects client assets.
Greeks.Live22.11.25

Why Is the Segregation of the Insurance Fund Important for Regulatory Purposes?

Segregation is vital because it ensures the fund is used only for its intended purpose: covering contract losses. Regulators require client funds to be kept separate from the exchange's operational capital.

Segregation prevents the exchange from misusing the fund for business expenses or proprietary trading, which protects traders' assets and ensures the fund is available when market stress requires it.

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