* Move is first in series of actions, SEC says
* SEC may ask public to comment on implementation plan
By Christopher Doering
WASHINGTON, June 15 The U.S. Securities and
Exchange Commission on Wednesday became the latest regulator
running behind schedule to delay a host of new regulations
overseeing the swaps market that were set to go into effect in
The securities regulator said "substantially all" of the
new requirements pertaining to security-based swaps will not go
into effect on July 16 -- a rapidly approaching deadline that
would have implemented parts of the Dodd-Frank financial reform
bill enacted nearly a year ago.
"This is the first step in a series of actions the SEC
intends to take in coming days to address effective date
issues," said Robert Cook, director of the SEC's Division of
Trading and Markets.
The SEC said after it has completed proposing all of the
key rules required by Dodd-Frank it could ask the public to
comment on a detailed implementation plan in order to minimize
market disruptions and unnecessary costs.
The move by the SEC follows similar action on Tuesday when
the Commodity Futures Trading Commission, which is drafting
rules for most derivatives including interest rate and currency
swaps, voted to delay its requirements until as late as Dec.
31. [ID:nN14252810] It impacted major swaps-based measures
including clearing exemptions for companies that use swaps to
hedge and defining a swap. The SEC did not propose a deadline.
Under last year's Dodd-Frank financial reform legislation,
regulators have until mid-July to implement new rules that gave
them oversight of the $600 trillion global swaps markets.
But the SEC and CFTC have said for months they will miss
As a result, banks, traders and other market participants
have been put in a bind, uncertain how they are to comply with
rules that go into effect even though they have not been
written, and what might happen if regulators find them in
Critics warned that unless regulators create a short-term
fix and provide some clarity for industry players worried about
the so-called self-executing provisions, the market might be
thrown into chaos.
(Editing by Lisa Shumaker)