SEC commissioners vote 5-0 to propose liquidity protections Regulation allows bond funds to penalize investors who exit http://www.bloomberg.com/news/artic...e-new-rules-aimed-at-preventing-investor-runs
"...U.S. regulators now want new protections to ensure that pledge can be met due to concerns that firms have loaded up on hard-to-sell assets....?" Mutual funds should NEVER be loaded up on "hard to sell" assets!
Investors also absorb trading costs that a fund incurs when it has to sell securities to meet redemptions, Barclays wrote. “The benefit to early redeemers is effectively a tax on investors who remain invested through big downturns,” Barclays’ analysts wrote. Of course... stupid/naive investors who "hang on regardless", deserve to take it in the shorts.
Cronyism once again. I'd like to see the SEC connections with big mutual fund companies. This only helps those companies and (maybe temporarily) the stock and bond markets. It's bad for investors. Aren't the penatlies for "overtrading" (like more than twice a year) at Vanguard and other places enough?
m22au said: SEC Finalizes ‘Tick Size’ Pilot for Smaller-Company Stock http://www.wsj.com/articles/sec-finalizes-tick-size-pilot-for-smaller-company-stock-1430949237 WASHINGTON—The stock prices of more than 1,000 small U.S. companies will trade in increments of five cents under a long-awaited plan the Securities and Exchange Commission finalized late Wednesday. The SEC voted to finalize the highly-anticipated test program that will run for two years beginning next May. It’s designed to determine whether trading the stocks of smaller companies in wider “tick sizes,” or the difference between what traders bid and offer for the shares, will boost interest in the stocks. The move is a shift from more than a decade of requiring trading in pennies. Wider increments, advocates of the plan say, will allow traders to reap higher rewards, giving them more of an incentive to trade the stocks and lessen volatility. Critics say its goals are aspirational and will accomplish little other than to make trading in certain shares more expensive for investors. The program will apply to firms with $3 billion or less in market capitalization, down from the $5 billion initially expected. . . More... wall street is up to its old tricks of screwing the public. the advocates of the new rule are wall street insiders. it is a cave in to wall street interests, the market makers. <http://www.elitetrader.com/et/index...00-smallcap-stocks-starting-may-2016.291356/> the outcome is nothing new. again, it is screw the public investor with the usual help from the SEC. to benefit members of the club.