On November 19th, the CFTC's Division of Clearing and Risk granted no-action relief allowing a futures commission merchant to enter into repurchase and reverse repurchase transactions under Commission Regulation 1.25 (investment of customer funds). The repos will subsequently be submitted for clearing by an SEC-registered securities clearing agency. By clearing the repos, the clearing-agency will become the FCM's counterparty. Although the clearing agency is not a "permitted counterparty" under CFTC rules, the Division believes that permitting the FCM to clear repos with the clearing agency, of which the FCM is a unit, is consistent with the risk-mitigation purpose of the regulation's counterparty limitations. CFTC Letter No. 12-34.