SEC Proposes Easing Fund Cross-Trading Rules to Restore Most Fixed-Income Cross Trades and Cut Costs
The U.S. Securities and Exchange Commission on October 9 issued a rule proposal (Release No. 2026-104) to amend Rule 17a-7 under the Investment Company Act of 1940, restoring cross-trading for most fixed-income securities.
In a cross trade, funds managed by the same investment adviser buy and sell securities directly with each other, bypassing market intermediaries. Current rules restrict cross trades in fixed-income securities, which the industry has long said raises trading costs for funds. The proposal would allow more fixed-income cross trades when safeguards such as transparent pricing and independent checks are met.
SEC Chairman Paul S. Atkins said the amendments are intended to lower trading costs for funds and their investors while keeping protections against conflicts of interest. The proposal will be open for public comment before the Commission votes on adoption.
Published by GSM · USA (original Chinese edition)
Photo: 图：纽约证券交易所交易大厅。摄影：Thomas J. O'Halloran，美国国会图书馆藏，公共领域，来源：Wikimedia Commons / Photo: Traders on the floor of the New York Stock Exchange. Credit: Thomas J. O'Halloran, Library of Congress, public domain, via Wikimedia Commons
