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SEC Proposes Expanding Securities Eligible for Cross Trading by Registered Funds
Issuer U.S. Securities and Exchange Commission · Published
This text is not the issuer's. It was produced by a language model from the official document, then checked automatically against DFIN's neutrality rules. The title above is carried verbatim.
On October 9, 2026, the U.S. Securities and Exchange Commission proposed amendments to Rule 17a-7 under the Investment Company Act of 1940, the "cross-trading rule" governing securities transactions between registered funds and certain affiliates. The SEC stated the proposal would modernize and expand the rule, restoring the ability to cross trade most fixed-income securities—restricted following adoption of the Investment Company Act's "fund valuation rule" in 2020—and updating conditions related to pricing and oversight, while requiring aggregated reporting of trading activity and cross trades. SEC Chairman Paul S. Atkins stated that the amendments would help deliver additional cost savings to investors. The SEC noted the proposal will be published on SEC.gov and in the Federal Register, with a comment period remaining open for 60 days after Federal Register publication.
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