What is the requirement regarding cash deposits for elective professional clients?

The requirement regarding cash deposits for elective professional clients indicates that there is no explicit requirement on the size, making it flexible for these clients. Elective professional clients are typically understood to be clients that have been assessed to have sufficient experience or knowledge in the relevant financial markets or products.

As a result, regulatory frameworks tend to provide more leeway regarding the amount of capital that such clients need to maintain for conducting business. Unlike retail clients, who are subject to strict protection measures and minimum deposit requirements, elective professional clients operate under a different set of standards that reflect their sophistication and risk-taking ability.

This lack of a specific minimum deposit requirement allows elective professional clients to decide how much cash to deposit based on their own financial strategies and risk management practices, accommodating diverse financial situations and investment strategies.