SIFMA Commends SEC Extension of No-Action Relief on Quotations Rule
SIFMA commended the SEC for extending no-action relief to brokers or dealers on the application of SEA Rule 15c2-11 ("Initiation or resumption of quotations without specific information") to most fixed income securities. (See previous coverage.)
SIFMA said the rule, which requires broker-dealers to complete information reviews prior to publishing or submitting quotations, is "ill-suited" for the distinct structure of "fixed-income markets." SIFMA stated that without the relief, "these markets would have seen material disruption and investors would have been harmed through a reduction in liquidity and price transparency."
SIFMA also argued that "if this rule is to be applied to fixed income markets, it needs to be revised through a public notice and comment process so that the Commission can design a rule that both protects investors and promotes, rather than impairs, the ability of fixed income markets to fund the consumer, business, and other credit creation that fuels our economy."
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