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Commentary by Bob Zwirb

The CFTC Division of Swap Dealer and Intermediary Oversight issued an interpretation of CFTC Rule 30.7(c) ("Treatment of Foreign Futures or Foreign Options Secured Amount"). CFTC Rule 30.7(c) provides that a futures commission merchant ("FCM") must deposit customer funds under the laws and regulations of the foreign jurisdiction that affords the greatest degree of protection to such funds, and provides further that an FCM may not waive any of the protections afforded to customer funds under the laws of that foreign jurisdiction. The interpretation in CFTC Letter 14-110 permits FCMs to deposit

The CFTC issued corrections to the final rules, which became effective on January 13, 2014, enhancing the protections afforded to customers and customer funds. The corrections amend erroneous cross-references found in three sections of the final rules and, in one section, insert language that was in the proposed rulemaking. Specifically, the CFTC corrected Rule 1.23 and Rule 30.7, which included erroneous cross-references to other CFTC Rules that do not exist or are incorrect. Additionally, in CFTC Rule 30.7(d)(1), the CFTC added language to the final rules that it stated was contained in the

76 FR 78766 The CFTC has adopted a final rule regarding the investment of customer funds by FCMs and DCOs that i) eliminates in-house transactions and repurchase agreements with affiliates (repos with third-parties are still allowed, subject to a 25% counterparty concentration limit); ii) eliminates foreign sovereign debt as a permitted investment; iii) limits investments in money market mutual funds based on a number of factors, and iv) and harmonizes Rule 30.7 with the investment limitations of Rule 1.25 and the concentration limits on various investments to promote portfolio diversification