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US SEC set to delay derivs rules

Monday 13 June 2011 - by Andrew Hickley

The US Securities and Exchange Commission has announced it will publish guidance informing the industry which derivatives rules it will postpone past a 16 July deadline.

This delay will also allow firms "temporary relief" from some provisions of new requirements, it announced in a statement on Friday.

However, the regulator gave no indication as to which rules are likely to be delayed.

Under the Dodd Frank Act, the regulator was due to adopt a number of reforms governing the security-based swaps market by mid-July, a year after the Act was finally passed.

The SEC will "provide guidance regarding - and where appropriate, temporary relief from - the various pre-Dodd Frank provisions of the Exchange Act that would otherwise apply to security-based swaps on July 16," the statement reads.

"Under Dodd Frank, security-based swaps would be included in the definition of "security" under the Exchange Act.

"While such swaps will be subject to provisions addressing fraud and manipulation, the Commission intends to provide temporary relief from certain other provisions of the Exchange Act so that the industry will have time to seek, and the Commission can consider, what if any further guidance or action is required.

It will take "a series of actions in the coming weeks" to clarify the requirements that will apply to security-based swaps, it said.

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