SIA Submits Comments to the SEC on Proposal to Harmonize Similar Rules Relating to Research Analysts

The Securities Industry Association (SIA)*provides comments to the Securities and Exchange Commission (SEC) on aproposal by the New York Stock Exchange (NYSE)and the National Association of Securities Dealers, Inc. (NASD) to harmonize similar rules relating to research analysts, Release No. 34-51545, SR–NYSE-2005-24. The proposal would clarify the definition ofcertain termswithin the rules relating toresearch analysts. SIA alsoprovides comments relating to remarks by SEC Chairman William Donaldson on issuer retaliation.

SIA believes the proposed definition of “associated person” should not include the phrase “kindred business,” since the term is vague, and does not appear in the National Association of Securities Dealers, Inc. (NASD’s) definition of “association person.” In the wake of recent public remarks by SEC Chairman Donaldson, SIA urges the SEC to take more direct action to convey to the issuer community that it is inappropriate to retaliate against analysts for negative research coverage.

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