SIFMA Statement on SEC Rule 15c2-11

Washington, D.C., December 16, 2021 – 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.”

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SIFMA is the leading trade association for broker-dealers, investment banks and asset managers operating in the U.S. and global capital markets. On behalf of our industry’s one million employees, we advocate on legislation, regulation and business policy affecting retail and institutional investors, equity and fixed income markets and related products and services. We serve as an industry coordinating body to promote fair and orderly markets, informed regulatory compliance, and efficient market operations and resiliency. We also provide a forum for industry policy and professional development.

SIFMA, with offices in New York and Washington, D.C., is the U.S. regional member of the Global Financial Markets Association (GFMA).