If yes, what laws pertain to segregation of assets, allocation of trades and or, trading procedures?
As discussed in response to question 1, the Division of Investment Management takes the position that an investment company must appropriately “cover” its options and futures positions, or place cash or high-grade liquid debt securities in a segregated account in an amount that is at all times sufficient to fulfill its obligations. The Commission has stated that only liquid assets, such as cash, U.S. government securities or other appropriate high-grade debt obligations, should be placed in such segregated accounts. The value of the assets in the account should be marked-to-market daily, and additional assets should be placed in the segregated account whenever the total value of the account falls below the amount required.5 Neither the Investment Company Act nor the Advisers Act directly addresses the issue of allocating client orders. Section 17(d) of the Investment Company Act may be implicated, however, by an adviser’s allocation of trades among a registered investment company and o
