CFTC pulls whistleblower rule from July 19 meeting

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WASHINGTON | Mon Jul 18, 2011 3:41pm EDT

WASHINGTON (Reuters) - The Commodity Futures Trading Commission unexpectedly pulled its whistleblower provision from the list of rules it had scheduled to finalize at its Tuesday meeting.

The whistleblower plan was part of the second tranche of rules the futures regulator planned to finalize as it carries out last year's Dodd-Frank financial reform law that gave it oversight of the $600 trillion global swaps markets.

CFTC officials said the rule was delayed while the agency waits for a review from the U.S. Government Accountability Office on Dodd-Frank that determines how whistleblower funds collected can be spent. The rule will be introduced at the regulator's next rule-making meeting on Aug 4.

The CFTC's five commissioners still expect to vote Tuesday on the process used for reviewing swaps for mandatory clearing and the removal of credit ratings in agency regulations.

The U.S. Securities and Exchange Commission in May finalized its own rule that would allow corporate whistleblowers to collect multi-million-dollar payouts for reporting financial wrongdoing.

The CFTC has estimated it will vote on at least 17 rules during July and August, 20 rules in September and October and nine rules in November and December.

(Editing by Alden Bentley)

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