Regulation & Policy
SEC proposes broader cross-trading rule for registered funds
The U.S. securities regulator proposed changes to Rule 17a-7 that could permit more securities to be traded between registered funds and affiliates under updated conditions. The proposal is open to comment; it is not a final rule.
The Securities and Exchange Commission announced proposed amendments on 9 October 2026 to the Investment Company Act rule governing certain trades between registered funds and affiliates. The agency says the proposal would expand eligible securities, including most fixed-income securities, and update pricing and oversight safeguards.
The release also describes aggregated reporting of cross-trading activity intended to improve transparency. Any expected reduction in trading costs is the SEC's rationale for the proposal, not an observed result of a rule already in force.
A proposal does not change the law by itself. The SEC says the comment period will run for 60 days after Federal Register publication. This item concerns fund cross-trading generally and does not announce a crypto-specific custody rule. Source: SEC press release 2026-104, 9 October 2026; facts independently summarized and linked, without copied images or branding.
Educational information. Not investment advice.
Educational information. Not investment advice.