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SEC Rule 15c2-11 governs when dealers are permitted to publish quotations for securities. Way back in September 2020, the SEC amended the rule to prohibit dealers from publishing quotes when current information about the issuer is not publicly available. In 2021, the Staff clarified its position that Rule 15c2-11 applies to fixed income securities and provided some limited relief for privately issued fixed income securities, which was ultimately extended to January 4, 2025.

As the Mayer Brown Free Writings & Perspectives blog notes, last Friday the Staff issued yet another no-action letter on the topic:

Broker-dealers had been preparing for the sunset of the prior time-based relief that the staff of the Securities and Exchange Commission provided in respect of compliance with Rule 15c2-11 as to certain fixed income securities, which expires on January 4, 2025. The SEC had separately provided exemptive relief with respect to Rule 144A securities; however, this still left broker-dealers with burdensome requirements to address for other fixed income securities. Now, the staff of the SEC has provided further relief in a no-action letter that was issued just yesterday for fixed income securities, which allows broker-dealers to continue to provide quotes to the extent that either the issuer or the fixed income securities meet one of seven specified criteria. Among others, relief is available for asset-backed securities, securities of an issuer that files call reports with a banking agency, and securities of an issuer that is an SEC-reporting company.

It should be noted that, back in October 2023, the SEC issued an order granting broker-dealers exemptive relief from Rule 15c2-11 for fixed-income securities sold in compliance with the Rule 144A.

– Dave Lynn