U.S. Securities and Exchange Commission SEC proposes amendments to the cross-trading rule for registered funds, restoring cross-trading in fixed-income securities
BIBIBI
AT A GLANCE
The U.S. Securities and Exchange Commission SEC proposes amendments to the cross-trading rule, seeking to restore registered funds’ ability to trade most fixed-income securities.
Article
U.S. Securities and Exchange Commission SEC proposes amendments to the cross-trading rule for registered funds, restoring cross-trading in fixed-income securities
PANews October 10 news, the U.S. Securities and Exchange Commission SEC announced a proposal to amend Section of the Investment Company Act, the “cross-trading rule,”17a-7 to restore the ability of registered funds and their affiliates to cross-trade most fixed-income securities, a practice previously restricted by the fund valuation rules. 2020 The proposal would update conditions including pricing and oversight, and require funds conducting cross-trades to submit summary reports.SEC Chairman Paul Atkins stated that cross-trades can help funds avoid transaction costs in public markets. The comment period is 60 days.
The U.S. Securities and Exchange Commission SEC proposes amendments to Section of the Investment Company Act, the 17a-7“cross-trading rule.”
02
The proposal seeks to restore the ability of registered funds and their affiliates to cross-trade most fixed-income securities.
03
The proposal would update conditions including pricing and oversight, and require funds conducting cross-trades to submit summary reports.
04
SEC Chairman Paul Atkins stated that cross-trades can help funds avoid transaction costs in public markets.
05
The comment period is 60 days.
AI-assisted interpretation
The following is analysis, separate from reported facts. Verify important claims independently.
Cross-trading is the direct purchase and sale of securities between a fund and its affiliates. This proposal seeks to relax the conditions for registered funds to trade most fixed-income securities, but it remains only a proposal.
Why it matters to readers
If ultimately adopted, the proposal could provide eligible funds with more ways to trade fixed-income securities and could reduce certain public-market transaction costs.
This is a U.S. fund-regulation proposal, not a final rule already in effect.
Risks and unknowns
The provided materials do not include SEC the original announcement or rules text.
It remains uncertain whether the proposal will ultimately be approved, amended, or withdrawn.
The specific scope of application, effective date, and requirements for pricing, oversight, and summary reporting have not yet been clarified.
Related Developments
Loading event timeline…
Related concepts
Cross-trading
This term is not in the glossary yet. Browse related concepts in the glossary.
