The Securities and Exchange Commission on Friday proposed amending Rule 17a-7 to restore the ability of registered funds to cross-trade most fixed-income securities, reversing a restriction imposed by the 2020 fund valuation rule. Chairman Paul S. Atkins said the changes would modernize the rule and recognize market developments that have made pricing more verifiable and transparent, while adding aggregated reporting of cross-trade activity. The proposal will be open for comment for 60 days after publication in the Federal Register.
SEC proposes widening fund cross-trading to fixed income
The SEC proposed restoring registered funds' ability to cross-trade most fixed-income securities under Rule 17a-7, with new pricing, oversight and reporting conditions.
Why it matters: Cross trades let funds avoid open-market trading costs; reopening fixed income to the practice could trim expenses for bond fund investors.
Data as of SEC press release, October 9, 2026 (opened and read in full). Single source: the Commission's own announcement; no independent confirmation of market reaction.
Sources
- SEC Proposes Expanding Securities Eligible for Cross Trading by Registered Funds · US Securities and Exchange Commission · 2026-10-09