SIA Submits Comments to the SEC on a Proposal on Purchases of Certain Equity Securities by the Issuer and Others

The Securities Industry Association (SIA)* provides comments to the Securities Exchange Commission (SEC) ona proposal on purchases of certain equity securities by the issuer and others, File No. S7-50-02, Rule 10b-18. SIA proposes a revision to the Rule 10b-18 to reflect market developments since the rule’s adoption. SIA’s principal objections to the proposed amendments are with the provision that would eliminate the block exemption and the provision that would require disclosure of the broker-dealer used to effect issuer repurchases. SIA believes the block exception has served the purpose of providing additional liquidity to the market without any demonstrable increase in manipulative activity and thus should be retained. With this change and the elimination of the broker-dealer disclosure provision, the retention of the current means with which to calculate price, and other suggestions, SIA will support this rule change.

SIFMA* is the product of a merger between the Securities Industry Association (SIA) and The Bond Market Association (TBMA) in 2006.