The U.S. Commodity Futures Trading Commission (CFTC) issued a proposed rule this week that governs investments by futures commission merchants (FCMs) and derivatives clearing organizations.
The new rule is titled the Investment of Customer Funds by Futures Commission Merchants and Derivatives Clearing Organizations. As noted, it would amend the commission’s regulations governing the safeguarding and investment by futures commission merchants (FCMs) and derivatives clearing organizations of funds held for the benefit of customers engaging in futures, foreign futures, and cleared swaps transactions.
Specifically, the proposed amendments would specifically revise the list of permitted investments in Regulation 1.25 and introduce certain related changes and specifications.
Also, the proposed amendments would eliminate the requirement in the commission’s regulations that a depository holding customer funds must provide the CFTC with read-only electronic access to such accounts for the FCM to treat the funds held in the accounts as customer segregated fund accounts.
The proposed rule is now open for public comment. The comment period will be open for 75 days after publication on CFTC.gov, with a closing date of Jan. 17, 2024. Comments must be made in writing and may be submitted electronically through the CFTC Comments online process. All comments received will be posted on CFTC.gov.