The original comment period was to expire January 13. The proposed rule is over 300 pages and contains 1300 questions and subquestions. Although ostensibly aimed at proprietary trading desks and bank-sponsored hedge funds, the rule is much broader. It would limit the ability of banks and bank-affiliated broker dealers to engage in principle trading, would bi-furcate the municipal market and would treat TOB trusts as hedge funds. SEC Commissioners Paredes and Gallagher issued a statement saying that in view of the complexity and far-reaching implications, the extension of the comment period should have been longer. The SEC announcement is available here. The statement by Commissioners Paredes and Gallagher is available here.
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