The Wall Street Journal is reporting in this article–“SEC Adopts Proposed Rules
To Address Fund Scandal“–that the SEC has voted 5-0, to propose a “hard cutoff” time as part of an overhaul of the fund industry’s operation. Under the rule, all orders to buy and sell mutual funds would have to be received by the fund company by 4 p.m. Eastern time.
Other articles:
- CBS Marketwatch.com: “SEC approves proposal to stop late fund trading”
- Forbes: “US SEC proposes ‘hard’ trade close for mutual funds“
You can read U.S. Treasury Secretary John Snow’s comments about the new proposal here.