SEC to Meet on CRAs, Flash Orders; Hold Roundtable on Lending, Shorting

Credit Rating Agencies:

The Securities and Exchange Commission announced Sept. 11 that it will hold an open meeting Sept. 17 to consider rules and proposals relating to credit rating agencies, and a recommendation to eliminate the use of flash orders.

In a separate Sept. 11 announcement, the agency said it will hold a roundtable over two days—Sept. 29 and Sept. 30—to consider securities lending and short sale issues.

NRSRO Issues

At the Sept. 17 meeting, the SEC will consider the adoption or proposal of rules for nationally recognized statistical rating organizations, including those that would impose additional disclosure and conflict of interest requirements, the agency said in a Sept. 10 notice. The SEC also will consider eliminating references to NRSROs from certain rules and forms, and requiring the disclosure of credit ratings used by registrants for a registered offering.

At the same meeting, the SEC said it will consider a recommendation to propose a rule change that would bar the practice of displaying marketable flash orders.

Questions on the meeting may be addressed to the Office of the Secretary at (202) 551-5400.

Roundtable

On Sept. 29, the roundtable for securities lending and short sales will start off with four panels discussing topics such as investor protection concerns, fee splits, proxy voting, electronic platforms, central counterparties, the future of securities lending, and regulatory gaps, the SEC said in a release. The roundtable will continue into Sept. 30, where two panels will consider issues such as pre-borrow and hard locate requirements, and short sale disclosures.

The roundtable agenda is available at the SEC's website. The list of the panelists will be available at a later date, the agency said. Questions on the roundtable may be addressed to the Division of Trading and Markets at (202) 551-5720.

The SEC's notice for the Sept. 17 meeting is available at http://www.sec.gov/news/openmeetings/2009/ssamtg091709.htm. The agenda for the Sept. 29 and Sept. 30 roundtable is available at http://www.sec.gov/news/press/2009/2009-196-agenda.htm.

Copyright (c) 2009, The Bureau of National Affairs, Inc. Reproduction or redistribution, in whole or in part, and in any form, is prohibited.