SEC Reins In Internal Bond Trading Embraced by Pimco and T. Rowe Price
- New regulation on valuations took effect on Thursday
- Rules impact internal bond ‘cross trading’ between funds
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Investment giants like Pacific Investment Management Co. are facing fresh restrictions on their ability to trade bonds internally between different funds under US Securities and Exchange Commission rules that took effect this week.
The crackdown on the practice, which is widely known as cross-trading, was opposed by Pimco, T. Rowe Price Group Inc. and other managers. The changes follow a lengthy phase-in of sweeping new rules on mutual fund valuations that the SEC passed in 2020 to bolster investor protections.