SEC proposes to allow money managers to cross-trade fixed-income securities
Summary
The SEC has proposed allowing money managers to once again cross-trade fixed-income securities, a move that proponents claim could lead to significant cost savings for investors. This proposal marks an effort to expand the trading practices in the fixed-income market, which advocates believe will enhance efficiency and reduce expenses for those involved.
Analysis
SEC: The U.S. Securities and Exchange Commission (SEC) is the federal agency responsible for enforcing securities laws, regulating securities markets, and protecting investors. In this development, the SEC issued a proposal to permit money managers to resume cross-trading fixed-income securities, a change backed by proponents for its potential to deliver cost savings to investors. Regulation: The SEC has proposed expanding the ability of money managers to cross-trade fixed-income securities. Market Practice: Proponents of the proposal argue that allowing such cross-trades would bring significant cost savings for investors.
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