[Code of Federal Regulations]
[Title 17, Volume 1]
[Revised as of April 1, 2006]
From the U.S. Government Printing Office via GPO Access
[CITE: 17CFR1.23]

[Page 65]
 
              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(a)(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 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, as amended at 69 FR 41426, July 9, 2004]