The National Futures Association (NFA) has proposed amendments to Section 12 of its Financial Requirements to clarify the types of collateral that are acceptable as security deposits for over-the-counter forex transactions. The proposed amendments provide that, in addition to cash, NFA Forex Dealer Members may accept as collateral instruments described as “permitted investments” of customer segregated funds under the Commodity Futures Trading Commission Rule 1.25. Such instruments include U.S. Treasury securities, municipal bonds, commercial paper and certain foreign and corporate debt, among others. The collateral will be subject to the haircuts set forth in CFTC Rule 1.17.