FINRA Extends Effective Date For TBA Margin Requirements

The SEC granted a proposal by FINRA to extend the effective date of amendments to Rule 4210 that establish margin requirements for "to-be-announced" or "TBA" transactions and other forward-settling agency securities transactions (collectively, "Covered Agency Transactions"). In accordance with the request, the margin requirements will go into effect on March 25, 2019 rather than June 25, 2018. The amendments to Rule 4210 relating to risk limits for Covered Agency Transactions that went into effect in December 2016 will remain effective.

As previously covered, this is not the first delay of the amendments. FINRA has indicated that it will use the extension to consult with industry participants and other regulators regarding the potential impact of the amendments on smaller- and medium-sized firms.