Trading between related funds
The Securities and Exchange Commission proposed changes on October 9 to Rule 17a-7, which permits securities transactions between a registered investment fund and certain affiliates under specified conditions.
Cross trading lets related funds trade securities with one another. The proposal would restore eligibility for most fixed-income securities, which the SEC said became effectively restricted following its 2020 fund valuation rule.
Pricing and public comments
The amendments would update pricing and oversight requirements and add reporting on aggregate trading and cross trades. The SEC said the changes could reduce trading costs for funds and their shareholders; that is a stated potential benefit, rather than a measured result.
The public comment period will run for 60 days after the proposal appears in the Federal Register.