FINRA Proposes to Delay Expiry Date of SBS Rules
FINRA proposed delaying the expiry date of Rule 0180 on the application of FINRA rules to security-based swaps ("SBS"), and extending the implementation of Rule 4240 on margin requirements for credit default swaps.
The expiration date of Rule 0180 would be delayed from September 1, 2021, to February 6, 2022, while implementation of the Interim Pilot Program under FINRA Rule 4240 would be delayed from September 1, 2021, to April 6, 2022. The proposed delays will align the end dates of the expiring rules with the effective dates of the rules that will replace them.
FINRA asked the SEC to waive the usual requirement that the proposed rule change not become operative until 30 days after the FINRA filing so that the proposal will be effective September 1, 2021.
Commentary
This filing essentially reflects the fact that FINRA recently updated its proposal to apply its rules to SBS activities of broker-dealers (original coverage here), and in that amendment, it included extended compliance dates consistent with this filing. The amended proposal was recently published by the SEC for comment.