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The US SEC is delaying certain assets from enforcement actions under the new disclosure rule

WASHINGTON, Sept. 24 (Reuters) – The Securities and Exchange Commission (SEC) announced Friday that it will postpone enforcement of certain assets under a new over-the-counter disclosure rule until January 3, 2022.

The new fulfillment date should come into effect on Tuesday.

The agency’s no-action letter, affecting the rates published by broker-dealers for buying and selling government bonds, changes or adds to the compliance date for a new rule to combat fraud in the US stock markets starting September 28, 2021 not. said the agency.

The position “only concerns enforcement measures and does not constitute a legal conclusion regarding the applicability of any statutory or regulatory provisions of securities law,” the agency said.

Next week’s new move aims to encourage investor disclosure by requiring over-the-counter issuers to make accurate and up-to-date financial information publicly available. These are often penny stock companies that do not meet the listing standards of the major exchanges. Continue reading

The requirements have created confusion in the bond market as bankers, trading platforms and investors now face intense compliance requirements before an unforeseen month end.

The Financial Times reported this week that the new regulation could discourage broker traders from trading and taking risks in this area for fear of attracting SEC enforcement action.

Bond trading associations, including the Bond Dealers of America and the Securities Industry and Financial Markets Association, wrote to regulators to say that amended regulations will have a “significant, detrimental effect” on government and corporate bond markets, and advocated for it an express respite, or more time to comply, the FT reported.

The SEC’s Friday letter is in response to such industry cries. While compliance is still mandatory until Tuesday’s deadline, the top market watchdog said the delay in enforcement measures is intended to enable the industry to make the necessary “operational and system changes” that can lead to compliance with the rule.

Reporting by Katanga Johnson in Washington, DC Editing by Chris Reese and David Gregorio

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