Alert July 19, 2011

SEC Grants Accelerated Approval for Continuation of FINRA Pilot Regarding Margin Requirements for Credit Default Swaps

The SEC approved on an accelerated basis a FINRA proposal to continue an existing pilot regarding margin requirements for certain transactions in credit default swaps under FINRA Rule 4240 and make related updating changes to the Rule.  As extended, the pilot program will expire on January 17, 2012.  Comments on the changes to Rule 4240 may be submitted no later than 21 days after its publication in the Federal Register.