SEC Proposes Modernization of Cross-Trading Rule

The SEC has released a proposed rule that would amend Rule 17a-7 under the Investment Company Act of 1940, which “permits securities transactions between a registered investment company and certain affiliates (referred to as ‘cross trades’), subject to conditions.” The proposed rule is intended to “expand the scope of securities that are eligible for cross trading, modernize the rule’s conditions, and enhance investor protection.”

For more information, see the press release and fact sheet — as well as the statements by SEC Chairman Paul Atkins and SEC Commissioner Mark Uyeda — on the SEC’s Web site.