SIFMA Welcomes Bill to Prevent Misapplication of SEC Rule 15c2-11 to Fixed Income Markets

Washington, D.C., June 13, 2025 – SIFMA today issued the following statement from Chris Killian, managing director, corporate credit and securitization, on the introduction of legislation which would exempt fixed-income securities from equity-based Rule 15c2-11:

“SIFMA appreciates the introduction of the ‘Protecting Private Job Creators Act’ by Representatives Troy Downing (R-MT) and Cleo Fields (D-LA).  We strongly support this legislation because it would ensure that the equity-specific Rule 15c2-11 is not wrongly applied to fixed-income markets.  In 2021, the SEC without notice reversed 50 years of regulatory practice and applied the Rule to fixed income securities, when the Rule had never been designed for them.  This sudden action has had significant negative effects on fixed income market participants and has necessitated a series of relief issuances by the Securities and Exchange Commission (SEC) to avoid greater calamity, but those steps have only partially mitigated the impact of inappropriate application of this rule.  There are significant differences between trading in the equity and the fixed income markets which must be recognized in the regulatory framework.  If a similar rule to 15c2-11 is to be applied to fixed-income markets in the future, which we do not believe is warranted, it can only be done through a public notice-and-comment process focused specifically on the fixed-income markets.”

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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).