SEC Proposes Liquidity Management Rules for Open-End Funds

September 25th, 2015

The Securities and Exchange Commission (SEC) proposed new rules this week to enhance liquidity risk management for mutual funds and exchange-traded funds (ETFs). The rules outline new requirements for liquidity risk management programs.  New disclosure requirements are also proposed in the rules.  Under the rules, mutual funds can also use ‘swing pricing’ to pass costs from purchase or redemption activity to the appropriate party associated with the activity.


In a statement, SEC Chair Mary Jo White said, “Promoting stronger liquidity risk management is essential to protecting the interests of the millions of Americans who invest in mutual funds and exchange-traded funds. These significant reforms would require funds to better manage their liquidity risks, give them new tools to meet that requirement, and enhance the Commission’s oversight.”  Industry stakeholders have three months to comment on the proposed rules.




SEC Press Release & Fact Sheet: