Vendors Accused of Over-Promising on Liquidity Rule

Two buy-side risk officers believe that the SEC put too much faith in the vendor community when making its liquidity rules, specifically for fixed income.

liquidity

On October 13, 2016, the US Securities and Exchange Commission (SEC) released its final rule to “promote effective liquidity risk management throughout the open-end fund industry, thereby reducing the risk that funds will be unable to meet redemption obligations and mitigating dilution of the interests of fund shareholders.” It set a go-live date for December 1, 2018.

These liquidity rules, as they have come to be known, require that fund managers classify holdings in four buckets that are

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe

You are currently unable to copy this content. Please contact [email protected]erstechnology.com to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a WatersTechnology account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: