SEC Proposes Expanding Securities Eligible for Cross Trading by Registered Funds

Billy Odell Tucker-Robinson Founder & Host — Banking With Billy Network • Financial Intelligence • Markets • World News • Independent Analysis
Published: 2026-10-09 • Permanent link

Yesterday, the Securities and Exchange Commission (SEC) announced a significant proposal that could shake up the investment landscape. The agency proposed expanding the list of securities eligible for cross-trading by registered funds, a move that could increase market efficiency and reduce trading costs. According to the proposal, cross-trading would be allowed for a wider range of securities, including those issued by non-affiliated parties. The SEC expects the proposal to benefit investors and the broader economy.

As the proposal gains traction, investors are likely to reap the benefits of increased market efficiency and reduced trading costs. Cross-trading allows registered funds to trade securities with their affiliates, which can lead to better prices and improved liquidity. This, in turn, can benefit consumers who rely on these funds for their investment needs. The expanded list of eligible securities could also attract more investment opportunities, potentially boosting economic growth.

The proposal marks a significant shift in the SEC's approach to cross-trading, which has been a topic of debate among industry experts. Since last quarter, the agency has been working to update the Investment Company Act's cross-trading rule, which has been in place since 1970. The new proposal is expected to build on the progress made in this area, paving the way for more efficient and competitive markets.

As the proposal moves forward, investors and industry experts will be watching closely for any updates or feedback from the SEC. The agency has invited comments on the proposal, which are due by a certain date. The SEC's decision on the proposal is expected to be a significant catalyst for the investment industry, and its impact will be closely monitored by market participants.