Commodity Futures Trading Commission
Office of External Affairs (202) 418-5080
Three Lafayette Centre
1155 21st Street, NW
Washington, DC 20581

Release: 4889-04
For Release: February 6, 2004


Washington D.C. – The Commodity Futures Trading Commission has announced amendments to its rules which are designed to further expand permissible investments for futures commission merchants (FCMs) and clearinghouses. Rule 1.25 sets forth the types of instruments in which FCMs and clearinghouses may invest segregated customer funds. This rule was previously amended in December 2000 to expand the list of permitted investments and to add provisions intended to minimize the credit, liquidity, and volatility risk associated with the additional investments.

The latest amendments will now permit futures commission merchants and derivatives clearing organizations to enter into repurchase agreements and collateral management programs using customer-deposited securities. Chairman James E. Newsome said, “These amendments reflect the CFTC’s ongoing commitment to review its rules to ensure their effectiveness in promoting the efficient use of capital. We will continue to review our requirements and to consider suggestions for further refinements.”

The rule is published in the Federal Register, and will be effective 30 days after publication. Copies of the rules may be obtained by contacting the Commission’s Office of the Secretariat, Three Lafayette Centre, 1155 21st Street, N.W., Washington, D.C. 20581, (202) 418-5100 or through the Commission’s website,

Media Contacts
Alan Sobba (202) 418-5080
R. David Gary (202) 418-5085
Office of External Affairs