[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: 17CFR1.26]

[Page 73]
 
              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.  1.26  Deposit of instruments purchased with customer funds.

    (a) Each futures commission merchant who invests customer funds in 
instruments described in Sec.  1.25 shall separately account for such 
instruments and segregate such instruments as belonging to such 
commodity or option customers. Such instruments, 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 this part. 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 or 
other futures commission merchant that it was informed that the 
instruments belong to commodity or option customers and are being held 
in accordance with the provisions of the Act and this part. Provided, 
however, that an acknowledgment need not be obtained from a clearing 
organization that has adopted and submitted to the Commission rules that 
provide for the segregation as customer funds, in accordance with all 
relevant provisions of the Act and the rules and orders promulgated 
thereunder, of all funds held on behalf of customers and all instruments 
purchased with customer funds. Such acknowledgment shall be retained in 
accordance with Sec.  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 
instruments described in Sec.  1.25 shall separately account for such 
instruments and segregate such instruments as belonging to such 
commodity or option customers. Such instruments, 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 this part. Each clearing 
organization upon opening such an account shall obtain and retain in its 
files a written acknowledgment from such bank or trust company that it 
was informed that the instruments belong to commodity or option 
customers of clearing members and are being held in accordance with the 
provisions of the Act and this part. Such acknowledgment shall be 
retained in accordance with Sec.  1.31. Such bank or trust company shall 
allow inspection of such instruments at any reasonable time by 
representatives of the Commission.

[65 FR 78012, Dec. 13, 2000]