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SEC Replies to Letter Concerning Fixed Income Trades with CCM to Acquire Third-Party Research

The SEC staff confirmed that the Exchange Act Section 28(e) ("Exchange, Broker, and Dealer Commissions; Brokerage and Research Services") exemption for "soft dollar" payments is available with respect to agency transactions in fixed income securities. The letter does not break any new ground. It just confirms that Section 28(e) commissions generated by agency executions of debt may be used to purchase research. For a full discussion of Section 28(e) and soft dollars, see the Trading Chapter of Lofchie's Guide to Broker-Dealer Regulation or the Trading Chapter of the Hedge Fund Guide.

See: SEC's Letter.

Tags

Regulated Activities
Research
Sub-Activity
Soft Dollars
Regulated Entities
Adviser / CTA / CPO Broker-Dealers
Regulated Products
Debt
Body of Law
Securities Law
Jurisdiction
US - Federal
Organization
SEC