Custody of Investment Company Assets with Futures Commission Merchants and Commodity Clearing Organizations

Zusammenfassung

The Commission is proposing a new rule under the Investment Company Act of 1940 to permit registered management investment companies to use futures commission merchants and commodity clearing organizations as custodians of their assets in connection with futures contracts and commodity options regulated under the Commodity Exchange Act. Currently, investment companies generally must maintain special accounts with their custodian banks for these transactions. The proposed rule would enable investment companies to effect their commodity trades in the same manner as other market participants under conditions designed to ensure the safekeeping of investment company assets.