© Reuters. FILE PHOTO: The U.S. Securities and Exchange Commission logo adorns an office door at the SEC headquarters in Washington, June 24, 2011. REUTERS/Jonathan Ernst
WASHINGTON (Reuters) – The U.S. Securities and Exchange Commission (SEC) on Monday proposed expanding the definition of broker-dealers and mandating that Principal Trading Firms (PTFs) must register with the agency.
The Wall Street regulator said the proposal, which is subject to public consultation, aims to enhance market resiliency and help level the playing field.
“In recent years, we’ve seen a number of high-profile events in markets with significant participation by PTFs. Tremors in the Treasuries markets in 2014, 2019, and at the beginning of the COVID crisis in 2020 demonstrate the importance of the SEC’s oversight of dealers,” said SEC Chair Gary Gensler a statement.
Monday’s rule expands the definition of a dealer as “one that engages in a routine pattern of buying and selling securities that has the effect of providing liquidity to other market participants.”
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