FINRA Proposes to Extend Exemption for Security-Based Swaps (with Lofchie Comment)

FINRA filed a proposed rule change with the SEC to extend the expiration date of FINRA Rule 0180 ("Application of Rules to Security-Based Swaps") to February 11, 2015. FINRA Rule 0180 limits, with certain exceptions, the application of FINRA rules with respect to security-based swaps.

Lofchie Comment: The extension indicates that the SEC is absorbing the lesson of the CFTC's difficulties in adopting a full set of rules that work. Perhaps under new leadership and with its recent request for comments on at least some of its interpretations, the CFTC will take the opportunity afforded by the extensions to coordinate with the SEC the development of a set of mutually agreed-upon rules.

See: Text of Proposed Rule Change.See also: CFTC Requests Comment Regarding Activities of Non-U.S. Swap Dealers and O'Malia Dissents (with Lofchie Comment) (January 3, 2014).