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SIFMA today issued the following statement, from Kenneth E. Bentsen, Jr., SIFMA president and CEO, on the publication by the SEC today regarding amended Rule 15c2-11 in relation to fixed income securities:
“Today’s publication by the SEC is complex, and we will review it with our members. As we noted in September when the SEC issued no-action relief delaying enforcement of the rule for fixed income products, we continue to believe that Rule 15c2-11 should not be applied to fixed-income markets, but if it is, it should be amended through a formal rulemaking with notice and comment to reflect the differences between fixed income markets and OTC equity markets. Upon first glance, it is concerning that through this staff exemption the Commission is interpreting this Rule, which was designed for and has been solely applied to equity markets for 50 years, to be applied in the future to some fixed income markets without further opportunity for public notice and comment.”
