BISYS, a mutual fund administration and back-office banking software company in Little Falls, N.J., has obtained an SEC exemption that will allow it to combine customers' collateral funds into one account which advisers from the funds can invest. This holds the promise of earning customers far greater returns on their collateral money, rather than earning narrow interest rate returns on individual accounts. BISYS said it would structure the account like money market funds, solely for the purposes of cash collateral investment. BISYS also said it would compensate the advisers for managing the trust account.

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