See the CFTC's Fact Sheet on "Proposed Rule on Regulations 1.25 and 30.7 Regarding Investment of Customer Funds and Credit Ratings", which discusses the Commission's "Proposed Rule on Regulations 1.25 and 30.7 Regarding Investment of Customer Funds and Credit Ratings," which proposed to limit CFMs (commodities futures merchants) to a 10% maximum collateral investment in money funds. It says, "Commodity Exchange Act, Section 4d(a)(2) provides that the investment of customer segregated funds is limited to obligations of the United States and obligations fully guaranteed as to principal and interest by the United States, and general obligations of any State or of any political subdivision thereof. Commission Regulations 1.25 and 30.7: Pursuant to authority under Section 4(c) of the CEA, the Commission substantially expanded the list of permitted investments by amending Commission Regulation 1.25 in December 2000 to permit investments in general obligations issued by any enterprise sponsored by the United States, bank certificates of deposit, commercial paper, corporate notes, general obligations of a sovereign nation, and interests in money market mutual funds (MMMFs).... The proposed rule would amend Regulations 1.25 and 30.7 in several respects."
