ALEXANDRIA, Va. – The NCUA Board said it has terminated four pilot programs that allowed individual credit unions to engage in the short sale of U.S. Treasuries.

The short sale program, which allowed the participating credit unions to bet on the direction of Treasury prices, will not be included in proposed amendments to the agency’s investment regulation, Part 703 of the NCUA Rules and Regulations, NCUA said.

NCUA is expected to amend Part 703 later this year by allowing credit unions to invest in a limited number of financial derivatives, mainly interest rate swaps and options, to help them hedge interest rate risk. Such investments are now currently limited to a handful of pilot programs.

 

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