The SEC wants to make sure mutual funds and ETFs are liquid for investors. This isn’t going to be as simple as it sounds.
The SEC has proposed rules to insure liquidity at mutual funds and exchange traded funds (ETFs). This all sounds good, but making it work will be another matter. The press release, dated September 22nd is entitled “SEC Proposes Liquidity Management Rules For Mutual Funds And ETFs”. There will be a comment period that begins after the proposed rules (22e-4) are published in the Federal Register.