FILE PHOTO: The seal of the U.S. Securities and Alternate Fee (SEC) is seen at their headquarters in Washington, D.C., U.S., Could 12, 2021. REUTERS/Andrew Kelly/File Photograph
September 24, 2021
By Katanga Johnson
WASHINGTON (Reuters) -The U.S. Securities and Alternate Fee (SEC) mentioned on Friday that it could delay enforcement of sure property from a brand new disclosure rule for off-exchange securities till Jan. 3, 2022.
The brand new compliance date was because of come into impact on Tuesday.
The company’s no motion letter, which impacts quotes revealed by dealer sellers for purchasing and promoting of presidency bonds, doesn’t change or amend the compliance date for a brand new rule geared toward stamping out fraud in U.S. equities markets beginning on Sept. 28, 2021, the company mentioned.
The place “issues enforcement motion solely and doesn’t characterize a authorized conclusion with respect to the applicability of statutory or regulatory provisions of the securities legal guidelines,” the company mentioned.
Subsequent week’s new measure goals U.S. ‘pink sheets’ in shakeup as securities regulator appears to stamp out fraud to spice up investor disclosures by requiring off-exchange issuers to make correct, up-to-date monetary info publicly obtainable. These are regularly penny-stock firms that don’t meet the primary exchanges’ itemizing requirements.
The necessities have sown confusion within the bond market as bankers, buying and selling platforms and traders now face intense compliance calls for forward of an unexpected month-end deadline.
The Monetary Occasions reported this week that the brand new regulation might stave off dealer sellers from buying and selling on this area and taking up dangers for concern of attracting an SEC enforcement motion.
Bond commerce associations, together with the Bond Sellers of America and the Securities Business and Monetary Markets Affiliation, wrote to regulators to say amended guidelines could have a “important, deleterious impact” on authorities and company bond markets, and pleaded for an express reprieve, or extra time to conform, the FT reported.
The SEC’s Friday letter is a response to such cries by trade. Whereas compliance continues to be necessary by the Tuesday deadline, the highest markets watchdog mentioned its delay of enforcement actions is supposed to permit for the required trade “operational and programs adjustments” that will result in compliance with the rule.
(Reporting by Katanga Johnson in Washington, D.C.Modifying by Chris Reese and David Gregorio)