SEC Approves FINRA Request to Delay Implementation of Margin Requirements Amendments
The SEC approved FINRA’s proposal to delay, from April 26, 2022 to October 26, 2022, the implementation of amendments to Rule 4210 ("Margin Requirements") for Covered Agency Transactions, as modified by Amendment No. 1.
As previously covered, the FINRA amendments will revise requirements approved, but not yet implemented under SR-FINRA-2015-036 ("Proposed Rule Change to Amend FINRA Rule 4210 to Establish Margin Requirements for the TBA Market"). Those requirements were first scheduled to become effective in December 2017, and are now to become effective on October 26, 2022.
FINRA submitted the filing for immediate effectiveness. Comments on the filing must be submitted within 21 days after publication in the Federal Register.
Commentary
It seems unlikely that the Covered Agency amendments to Rule 4210 will ever be effective as originally adopted. As FINRA notes in the filing, in January the SEC (acting through the staff) approved further changes to the rules, but that approval is now stayed until the SEC itself orders otherwise. Whatever happens with the newer proposal, it would be very surprising if FINRA were to move forward with the rules as adopted over five years ago (but never implemented).