SEC Proposes Expanding Securities Eligible for Cross-Trading Between Registered Funds

The U.S. Securities and Exchange Commission (SEC) has proposed amendments to the 'cross-trading rule' under the Investment Company Act. The current rule permits

us-equity · 2026-10-09

The U.S. Securities and Exchange Commission (SEC) has proposed amendments to the 'cross-trading rule' under the Investment Company Act. The current rule permits securities transactions between registered funds and their affiliates under specific conditions. The proposed amendments would expand the range of securities eligible for cross-trading.

weltiq perspective: Changes in fund-to-fund trading regulations can affect how institutional investors provide liquidity, potentially leading to shifts in market microstructure and bid-ask spreads.

Source: https://www.sec.gov/newsroom/press-releases/2026-104-sec-proposes-expanding-securities-eligible-cross-trading-registered-funds

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