Regulatory Notice 16-13

Revised SEC No-Action Guidance Expanding the Definition of “Ready Market” for Certain Foreign Equity Securities

The staff of the Division of Trading and Markets of the Securities and Exchange Commission (SEC staff) has issued a revised no-action letter (the February 2016 letter) setting forth conditions under which broker-dealers may treat certain foreign equity securities as having a “ready market” under SEA Rule 15c3-1(c)(11)(i) and subject to the haircuts under SEA Rule 15c3-1(c) (2)(vi)(J). The February 2016 letter replaces the previous SEC staff no-action letter, issued in November 2012, that addressed this subject matter (the November 2012 letter).

The February 2016 letter is available on the SEC’s website.

Questions concerning this Notice should be directed to:

  • Glen Garofalo, Director, Credit Regulation, Risk Oversight and Operational Regulation (ROOR) at (646) 315-8464;
  • Steve Yannolo, Project Manager, Credit Regulation, at (646) 315-8621; or
  • Yui Chan, Managing Director, ROOR, at (646) 315-8426.