The Self-Regulation and Supervisory Practices Committee of the Securities Industry Association (SIA)* provide comments to the Securities and Exchange Commission (SEC) on proposed Rule 2790: Trading in Hot Equity Offerings, Securities Exchange Act Release No. 34-42325; File No. SR-NASD-99-60.  The proposed rule would govern allocations of “hot issues” and replace the Free-Riding and Withholding Interpretation under National Association of Securities Dealers, Inc. (NASD) Rule 2110. Some key points of the proposal may make the proposed rule difficult to administer.
*SIFMA is the product of a merger between the Securities Industry Association (SIA) and The Bond Market Association (TBMA) in 2006.