The CFTC’s Division of Clearing and Risk granted an eight-month extension for pre-trade screening requirements on Wednesday. The new requirement (Rule 1.73) was scheduled to go into effect on October 1. Market participants will now have until June 1, 2013 to reach full compliance.
The extension is meant to “provide additional time for market participants to coordinate on the communication of limits for give-ups and bunched order for futures and swaps.”
In response to Rule 1.73 extension, the Futures Industry Association issued a statement to its members.
“The FIA has been working closely with the Commission and its staff over the last several months to address specific concerns with the implementation of [Rule 1.73].”
The FIA statement added, “While significant operational and technological challenges remain…today’s relief will allow the industry some ability to scope the market structure complications raised by Rule 1.73 and work to develop a plan for overcoming these difficulties.”
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