Hedge Fund Industry Groups Sue US SEC Over New Treasury Market Dealer Rule
Monday, 18 March 2024, 17:23
Hedge Fund Industry Associations Challenge SEC
Trade groups representing the private fund management industry took legal action against the U.S. Securities and Exchange Commission (SEC) on Monday over a new rule targeting firms that engage in government bond trading.
Stricter Oversight Demands
- SEC's recent regulation aims to enforce enhanced oversight and risk controls on trading entities dealing in government securities.
- The rule targets proprietary traders who are crucial liquidity providers in the U.S. Treasury market.
- Confusion and Potential Misidentification
- Industry groups argue that the rule's wording is unclear and could mistakenly categorize regular traders as broker-dealers.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.