On May 22, the Commodity Futures Trading Commission issued an advance notice of proposed rulemaking with respect to CFTC Regulation 1.25, governing the investment of customer funds held by a derivatives clearing organization (DCO) or a futures commission merchant (FCM) and segregated pursuant to Section 4d of the Commodity Exchange Act (customer segregated funds). The CFTC is considering significant revisions to the scope and character of permitted investments for customer segregated funds and is seeking public comment before issuing any proposed amendments to Regulation 1.25. The CFTC is also requesting comment on whether customer funds held by an FCM in an account subject to CFTC Regulation 30.7 in connection with foreign futures and options positions should explicitly be made subject to the same investment limitations that currently apply to customer segregated funds. The deadline for comments is July 21.  

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