Derivatives rules now to take effect next July

AP News
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Posted: Dec 19, 2011 5:57 PM
Derivatives rules now to take effect next July

Federal regulators have put off until July the date for rules to take effect bringing oversight to the market for derivatives, the complex financial instruments blamed for helping precipitate the financial crisis. That will be two years after enactment of the 2010 financial overhaul law mandating the rules.

The Commodity Futures Trading Commission announced Monday its second extension of the effective date for the rules. The original date under the law was last July 16, which the CFTC had extended to Dec. 31. The regulators haven't been able to complete writing many of the rules. They say their complexity has delayed the process.

Derivatives are traded in a $600 trillion market worldwide. Their value hinges on an underlying investment or commodity _ such as currency rates or oil prices.