Proposed rule · 2026-21037

Investment Company Cross Trading

The Securities and Exchange Commission (the "Commission") is proposing to amend the rule under the Investment Company Act of 1940 (the "Investment Company Act") that permits securities transactions between a registered investment company and certain affiliates (referred to as "cross trades"), subject to conditions. The proposed amendments are designed to expand the scope of securities that are eligible for cross trading, modernize the rule's conditions, and enhance investor protection. The Commission also proposes to require aggregated reporting of trading activity and cross trades in Form N- PORT and Form N-MFP.