[Code of Federal Regulations]
[Title 17, Volume 1]
[Revised as of April 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 17CFR1.32]

[Page 77-78]
 
              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, on a currency-by-currency basis:
    (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 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

[[Page 78]]

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, as amended at 68 FR 5551, Feb. 4, 2003]