The Commodity Futures Trading Commission (CFTC) is seeking public comment on proposals to change its regulations regarding customer funds deposited
The Commodity Futures Trading Commission (CFTC) is seeking public comment on proposals to change its regulations regarding customer funds deposited with clearing organisations and futures commission merchants.
The proposed changes would apply to the investment of customer funds segregated pursuant to Section 4d of the Commodity Exchange Act and funds held in an account subject to Regulation 30.7.
Regulation 1.25 provides that a derivatives clearing organization or a futures commission merchant holding customer segregated funds may invest those funds in certain permitted investments subject to specified requirements that are designed to minimize exposure to credit, liquidity, and market risks. The CFTC is considering proposing amendments that would revise the scope and character of these permitted investments.
Additionally, in conjunction with its consideration of possible amendments to Regulation 1.25, the CFTC is considering applying the investment requirements of Regulation 1.25, including any prospective amendments, to investments of funds held in accounts subject to Regulation 30.7 (accounts for foreign futures and options).
The CFTC is seeking public comment on this action before issuing any proposed rule amendments. All comments received will be be posted on the CFTC's website.
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