SIFMA today issued the following statement from president and CEO Kenneth E. Bentsen, Jr. on the issuance of revised no-action relief for SEC Rule 15c2-11:
“Extending the 15c2-11 no-action relief is the right outcome and we commend the SEC for taking this approach. SIFMA has long held that rules need to be fit for purpose and designed thoughtfully. In this case, an equity-markets focused rule was ill-suited for application to the very different fixed income markets, and if the current no action relief that has allowed fixed income markets to continue to function effectively were to expire, these markets would have seen material disruption and investors would have been harmed through a reduction in liquidity and price transparency. 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.”
