17 Commodity and Securities Exchanges 1 2000-04-01 2000-04-01 false Deposit of obligations purchased with customer funds. 1.26 Section 1.26 Commodity and Securities Exchanges COMMODITY FUTURESTRADING COMMISSION GENERAL REGULATIONS UNDER THE COMMODITY EXCHANGE ACT Customersâ Money, Securities, and Property
§ 1.26 Deposit of obligations purchased with customer funds.

(a) Each futures commission merchant who invests customer funds in obligations described in § 1.25 shall separately account for such obligations and segregate such obligations as belonging to such commodity or option customers. Such obligations when deposited with a bank, trust company, clearing organization or another futures commission merchant, shall be deposited under an account name which clearly shows that they belong to commodity or option customers and are segregated as required by the Act and these regulations. Each futures commission merchant upon opening such an account shall obtain and retain in its files an acknowledgment from such bank, trust company, clearing organization of other futures commission merchant that it was informed that the obligations belong to commodity or option customers and are being held in accordance with the provisions of the Act and these regulations. Such acknowledgment shall be retained in accordance with § 1.31. Such bank, trust company, clearing organization or other futures commission merchant shall allow inspection of such obligations at any reasonable time by representatives of the Commission.

(b) Each clearing organization which invests money belonging or accruing to commodity or option customers of its clearing members in obligations described in § 1.25 shall separately account for such obligations and segregate such obligations as belonging to such commodity or option customers. Such obligations, when deposited with a bank or trust company, shall be deposited under an account name which will clearly show that they belong to commodity or option customers and are segregated as required by the Act and these regulations. Each clearing organization upon opening such an account shall obtain and retain in its files an acknowledgment from such bank or trust company that it was informed that the obligations belong to commodity or option customers of clearing members and are being held in accordance with the provisions of the Act and these regulations. Such acknowledgment shall be retained in accordance with § 1.31. Such bank or trust company shall allow inspection of such obligations at any reasonable time by representatives of the Commission.

(Approved by the Office of Management and Budget under control numbers 3038-0007 and 3038-0024) [46 FR 54519, Nov. 3, 1981, as amended at 46 FR 63035, Dec. 30, 1981]