[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: 17CFR1.32]

[Page 71-72]
 
              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. 1.32  Segregated account; daily computation and record.

    (a) Each futures commission merchant must compute as of the close of 
each business day:
    (1) The total amount of customer funds on deposit in segregated 
accounts on behalf of commodity and option customers;
    (2) the amount of such customer funds required by the Act and these 
regulations to be on deposit in segregated accounts on behalf of such 
commodity and option customers; and
    (3) the amount of the futures commission merchant's residual 
interest in such customer funds.
    (b) In computing the amount of funds required to be in segregated 
accounts, a futures commission merchant may offset any net deficit in a 
particular customer's account against the current

[[Page 72]]

market value of readily marketable securities, less applicable 
percentage deductions (i.e., ``securities haircuts'') as set forth in 
Rule 15c3-1(c)(2)(vi) of the Securities and Exchange Commission (17 CFR 
241.15c3-1(c)(2)(vi)), held for the same customer's account. The futures 
commission merchant must maintain a security interest in the securities, 
including a written authorization to liquidate the securities at the 
futures commission merchant's discretion, and must segregate the 
securities in a safekeeping account with a bank, trust company, clearing 
organization of a contract market, or another futures commission 
merchant. For purposes of this section, a security will be considered 
readily marketable if it is traded on a ``ready market'' as defined in 
Rule 15c3-1(c)(11)(i) of the Securities and Exchange Commission (17 CFR 
240.15c3-1(c)(11)(i)).
    (c) The daily computations required by this section must be 
completed by the futures commission merchant prior to noon on the next 
business day and must be kept, together with all supporting data, in 
accordance with the requirements of Sec. 1.31.

[66 FR 41133, Aug. 7, 2001]