SEC Proposes Reopening Bond Cross Trades Between Affiliated…
By Rick Steves
AI summary of the source article
The SEC has proposed amendments to Rule 17a-7 of the Investment Company Act to restore fixed-income cross trading between registered funds and eligible affiliates. The proposal introduces revised pricing, oversight, and aggregated reporting requirements to reduce transaction costs.
Why it matters
The intended result is lower transaction costs for investment funds, although the central challenge remains ensuring that an internal transaction treats both the buying and selling funds fairly.
Key facts
- The SEC proposed changes to Rule 17a-7 to restore cross trading for most fixed-income securities between registered funds and eligible affiliates.
- The measure addresses restrictions stemming from the SEC's 2020 fund valuation rule that hindered bond cross trading due to quotation requirements.
- The proposal introduces revised pricing, oversight conditions, and aggregated reporting of trading activity and cross trades by registered funds.
Source excerpt · FinanceFeeds
The Securities and Exchange Commission has proposed changes to Rule 17a-7 of the Investment Company Act that would restore cross trading for most fixed-income securities between registered funds and eligible affiliates. The proposal, outlined in SEC Chairman Paul Atkins' statement , would expand the range of transactions funds can execute internally while introducing revised pricing, oversight and…