In March 2006, the US Securities and Exchange Commission (SEC) approved Rule 22c-2 under the Investment Company Act of 1940 that changed the landscape for US mutual fund companies and those entities that sell and service US mutual funds – including brokers, dealers, and banks. The goal of the new rule is to prevent harm to long-term fund shareholders from the practices of excessive frequent trading and market timing. While the new rule is directed at mutual fund companies and directly impacts US broker/dealers, there are ramifications for institutions worldwide who deal in US mutual funds.
Barry Raskin, managing director of Telekurs Financial’s US subsidiary, said: With more than 3.6 million financial instruments in our worldwide database of structured and encoded securities, we needed to be sure we partnered with the right company that could deliver the most accurate financial data available. NewRiver’s FundPOINT Data is an important addition to the Valordata Feed, our comprehensive global securities reference and corporate actions service, and we are pleased to be able to offer these market critical market timing policies to our worldwide client base.
