FINRA Proposes Rule to Extend Implementation of Rule 4240 (Fed. Reg.)

The FINRA proposal to extend the implementation of FINRA Rule 4240 ("Margin Requirements for Credit Default Swaps") until July 17, 2015 was published in the Federal Register and is effective immediately.

FINRA Rule 4240 implements an interim pilot program with respect to margin requirements for certain transactions in credit default swaps that are security-based swaps. In the absence of an extension, the rule would expire on July 17, 2014.

While the rule was deemed noncontroversial by the SEC and is effective immediately, comments on the proposal may be submitted until July 30, 2014.

See: 79 FR 39031. Related news: FINRA Proposes Amendment to Extend FINRA Rule 4240 (June 23, 2014).