SEC: new rules for the purchase of treasury shares and “time-of-day sales” of executives
The SEC, which met on Wednesday, decided to propose new restrictions on the trading of shares by executives of listed companies and increased disclosure requirements on repurchases of company shares , all after several CEOs of large companies, from Musk to Bezos, have sold billions of dollars in securities in the past few weeks. But the SEC didn't stop there, and it also imposed new rules for money market funds .
As regards the buybacks of treasury shares, the introduction of a periodic ad hoc module is proposed and the periodic information obligations to be made more stringent, even if we will have to wait for the definitive proposal to understand its scope.
Despite reports of infighting between Democrats and Republicans on the committee, the proposal was voted by a majority of five to three and proposals for public comment will be published.
One of the rules under consideration is the tightening of disclosure rules for swap-based assets, to try to ensure that a family office the size of Archegos cannot suddenly lose all of its money in a handful of over-indebted portfolios without anyone before. know nothing about it.
The new rules the agency is expected to outline on Wednesday would require more information and would set further restrictions on companies trading in these derivatives. Positions worth at least $ 300 million, or the equivalent of 5% of the shares traded in an underlying security, would trigger new SEC reporting requirements.
According to the SEC, swap investors are expected to disclose their identities, positions in the underlying swaps and securities, as well as related loans. The agency would also require reporting for large positions involving bonds and credit default swaps.
In other words: money launderers and “family office” investors seeking to keep a low profile will have to disclose their speculative positions on stock exchanges. So you will know first who made a mistake and is about to jump …
Finally, companies should also disclose more information on their insider trading policies and option grant practices which are scheduled within 14 days after major news is disclosed. So you will understand if someone has been clever with the information acquired internally in, or from, listed companies. Which in the USA he takes to jail without going through the street.
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The SEC article : new rules for the purchase of treasury shares and "Clock sales" of executives comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/sec-nuove-regole-per-acquisti-azioni-proprie-e-vendite-ad-orologeria-dei-dirigenti/ on Wed, 15 Dec 2021 20:14:21 +0000.