Published

MFA Submits Comment Letter to SEC on Proposed Rule 10B-1

MFA submitted a letter to the Securities and Exchange Commission in response to the proposed rule 10B-1. In the letter, urges the Commission to reconsider the Proposal, which we believe will have a significant detrimental impact on the markets, and will undermine, rather than advance, the Commission’s objectives to enhance transparency in a manner that protects investors, maintains fair, orderly, and efficient markets, and facilitates capital formation. MFA highlights that:

  • The Commission has not adequately considered the costs and adverse consequences of public disclosure of SBS positions on SBS and underlying securities markets, and the participants in these markets.
  • Proposed Rule 10B-1 exceeds the Commission’s statutory authority under Section 10(d) of the Exchange Act.
  • If the Commission believes, after further consideration of the costs of the Proposal and other issues addressed in this letter, that a rulemaking is still necessary and appropriate, it can achieve its goals without excessive disruption of markets and the imposition of undue burdens on market participants by adopting less burdensome requirements under a regulatory reporting rule similar to the CFTC’s large trader reporting rules.
  • In addition, if the Commission believes, after such further consideration, that a rulemaking is still necessary and appropriate, the Commission should ensure that its approach to position reporting in the final rule takes into account all of the additional direct and indirect operational and strategic costs associated with compliance.