The Securities and Exchange Commission proposed a rule in November that would mandate “swing pricing” for all open-ended funds, except for money-market funds and exchange-traded funds.
The proposal also requires that covered funds keep at least 10% of their assets in highly liquid assets and would mandate a “hard close” at 4 p.m. Eastern time. Open-ended funds must also appoint a swing pricing administrator, who cannot be the same person as the portfolio manager.
The comment period for the swing pricing proposal opened on December 16 and will remain open until February 4, 2023. Instructions on how to submit a comment can be found here, and existing comments here.
Swing pricing is a pricing mechanism which adjusts the net asset value of a fund to account for trading costs and passes those costs to the traders in the form of a reduced…
