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

Release: 5044-05
For Release: February 1, 2005


WASHINGTON, D.C. – The Commodity Futures Trading Commission (CFTC) announced today that it is soliciting public comment on proposed amendments to its rules governing permissible investments of customer funds by futures commission merchants (FCMs) and clearinghouses.

The proposed amendments would permit FCMs that are also securities broker dealers to engage in in-house transactions similar to repurchase agreements with third parties; allow investments in certain instruments with call features or caps, floors, or collars on the interest paid pursuant to the terms of an adjustable rate instrument; clarify the permissibility of certain types of adjustable rate instruments; reinforce safeguards in the area of auditability standards for investment records; and apply registration requirements for money market mutual funds.

CFTC Acting Chairman Sharon Brown-Hruska said:

“Rule modernization for intermediaries, which was encouraged by the Commodity Futures Modernization Act of 2000, remains a high priority for the CFTC. I am pleased with the progress that has been made previously and to be moving forward with this current initiative.”

The proposed rule amendments will be published in the Federal Register with a 30-day comment period. Copies 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 by accessing the Commission’s website, Interested parties may submit their comments electronically at All comments received will be promptly posted on the Commission's website.

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

Staff Contact
James L. Carley, Director
Division of Clearing and Intermediary Oversight
(202) 418-5438

Related Documents
Proposed Amendments