Regulatory News
SEC proposes expanding cross-trading rule for registered funds
The SEC proposed amendments on Friday to expand securities eligible for cross trading by registered funds and add reporting. The comment period runs 60 days after Federal Register publication.
- Proposal would restore cross trading for most fixed-income securities.
- Amendments would modernize pricing, oversight and reporting conditions.
- Comment period stays open for 60 days after Federal Register publication.
Action
The Securities and Exchange Commission proposed amendments to the Investment Company Act cross-trading rule, Rule 17a-7, on Friday.
The SEC said the changes would modernize and expand the rule. It said the proposal would allow cross trades beneficial to registered funds and their shareholders, subject to enhanced investor protection measures.
Chairman Paul S. Atkins said the amendments would help deliver additional cost savings to investors.
Respondents
The proposal applies to registered funds and certain affiliates.
Effective
The proposal will be published on SEC.gov and in the Federal Register.
The comment period will remain open for 60 days after publication in the Federal Register.
Penalty
No penalty was announced.
Source: U.S. SEC,