The Commodity Futures Trading Commission authorized US future commission merchants to hold their clients’ so-called Part 30.7 funds in the form of cash collateral with UK investment firms that may be subject to either oversight by the UK Financial Conduct Authority or the UK Prudential Regulatory Authority in connection with their handling of such funds. A staff interpretation issued last week now explicitly allows FCMs to hold clients’ cash collateral with investment firms that are also UK  deposit-taking banks under UK regulation.