[Code of Federal Regulations]
[Title 17, Volume 1]
[Revised as of April 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 17CFR1.23]

[Page 62-63]
 
              TITLE 17--COMMODITY AND SECURITIES EXCHANGES
 
             CHAPTER I--COMMODITY FUTURES TRADING COMMISSION
 
PART 1--GENERAL REGULATIONS UNDER THE COMMODITY EXCHANGE ACT--Table of Contents
 
Sec. 1.23  Interest of futures commission merchant in segregated funds; additions and withdrawals.

    The provision in section 4d(2) of the Act and the provision in 
Sec. 1.20(c), which prohibit the commingling of customer funds with the 
funds of a futures commission merchant, shall not be construed to 
prevent a futures commission

[[Page 63]]

merchant from having a residual financial interest in the customer 
funds, segregated as required by the Act and the rules in this part and 
set apart for the benefit of commodity or option customers; nor shall 
such provisions be construed to prevent a futures commission merchant 
from adding to such segregated customer funds such amount or amounts of 
money, from its own funds or unencumbered securities from its own 
inventory, of the type set forth in Sec. 1.25, as it may deem necessary 
to ensure any and all commodity or option customers' accounts from 
becoming undersegregated at any time. The books and records of a futures 
commission merchant shall at all times accurately reflect its interest 
in the segregated funds. A futures commission merchant may draw upon 
such segregated funds to its own order, to the extent of its actual 
interest therein, including the withdrawal of securities held in 
segregated safekeeping accounts held by a bank, trust company, contract 
market clearing organization or other futures commission merchant. Such 
withdrawal shall not result in the funds of one commodity and/or option 
customer being used to purchase, margin or carry the trades, contracts 
or commodity options, or extend the credit of any other commodity 
customer, option customer or other person.

[62 FR 42400, Aug. 7, 1997]