Bipartisan House Members Author Letter Voicing Opposition to SEC Swing Pricing Proposal

In September, a group of bipartisan members of the U.S. House of Representatives sent a letter to Securities and Exchange Commission (SEC) Chair Gary Gensler voicing their opposition to the Commission’s open-end fund liquidity, swing pricing, and hard close proposal. The letter, signed by Representative Ann Wagner (Chair of the House Financial Services Capital Markets Subcommittee) and Representative Brad Sherman (Ranking Member of the House Financial Services Capital Markets Subcommittee), as well as 36 additional House members, urges the Commission to withdraw its proposal that would implement swing pricing and a hard close for mutual funds, as well as amend liquidity rules. The letter notes, “The SEC has not adequately identified a market failure, or a significant market threat, that this proposal would address.” The letter notes that any purported benefits are “speculative” in nature and the proposal is likely to “cause harm to millions of retirement savers and retail investors.”

Click here to read the bipartisan House letter in opposition to swing pricing.