9th September 2011
The US regulator due to implement new legislation governing the derivatives market has admitted that updated rules will not come into effect until next year.
Gary Gensler, chairman of the Commodity Futures Trading Commission (CFTC), said in a meeting on Thursday that new regulations for over-the-counter derivatives will be finalised in the first quarter of 2012.
A revised schedule for the publication of the reforms, which the CFTC was tasked with drawing up under the provisions of the Dodd-Frank financial reform act, has now been published by the commission.
"We are focused on considering these rules thoughtfully - not against a clock," Mr Gensler said.
"No doubt, as this is a human endeavour, there will likely be changes to this outline down the road."
Members of the CFTC are working on new rules for over-the-counter derivatives known as "swaps", as largely unregulated deals in this sector are believed to have contributed to the financial crisis.
The original timetable for reform, set out by Congress after the Dodd-Frank law was passed, specified July 2011 as the deadline for the new regulatory framework.
Posted by Andrew Johnston
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