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The Securities Industry and Financial Markets Association (SIFMA) today issued the following statement on the Securities and Exchange Commission’s guidance regarding dealer and issuer involvement in the auction rate securities market:
“SIFMA commends the SEC for its quick response and recognition of the importance of providing participants in the auction rate securities market with clarification on its views regarding dealers and issuers involvement in auctions,” said Tim Ryan, president & CEO of SIFMA. “Specifically, we are pleased that the SEC granted a ‘no action’ position in the event that municipal issuers, conduit borrowers and participating dealers participate in bids for municipal auction rate securities, providing this activity is adequately disclosed. We believe this action will alleviate some of the recent dislocation in the auction rate securities markets.”
