FINRA Proposes to Further Delay Implementation of TBA/CAT Margin Rules
FINRA proposed to further delay the implementation of margin requirements for Covered Agency Transactions ("CATs") from October 26, 2022 to April 24, 2023.
The proposal relates to the implementation of amendments to FINRA Rule 4210 ("Margin Requirements") to impose requirements on CATs, including "To Be Announced" ("TBA") trading. Amendments to rules adopted in FINRA rulemaking 2015-036 were initially approved on June 15, 2016, but have yet to be implemented.
The proposed extension does not relate to further amendments to the rules adopted in FINRA rulemaking 2021-010, which was later stayed pending further SEC action.
Comments on the filing will be accepted until 21 days after publication in the Federal Register.
Commentary
It would be a strange outcome if FINRA were to let the rulemaking adopted in 2015-036 become effective without the modifications made in 2021-010 (see related coverage). Then again, I don't think any of us figured these rules would still be up in the air nine years after FINRA first proposed them.
