On Friday, the Securities and Exchange Commission issued several orders and exemption letters to provide additional relief from the aftereffects of the Sept. 11 attacks on the market.
On Sept. 14, the SEC issued a 5-day temporary relief order exempting funds from certain requirements regarding lending arrangements (MFMN 9/17/01). The Commission has extended that order for five additional business days, and so mutual funds will be permitted to borrow and lend money to related parties through this Friday.
The Commission also issued an interpretive release regarding the effects of the attacks on rules governing the number of shares an insider can sell on the open market and when people can trade with nonpublic information. The release allows insiders to ignore the week of Sept. 11 in their volume calculation and gives them "greater leeway concerning written plans to purchase or sell securities," according to the SEC.
Finally, the SEC issued three exemption letters to offer flexibility in certain operating procedures that were affected. A letter to the Nasdaq Stock Market changes its deadline for the monthly report on the quality of trade executions, originally due in Sept., to Nov. 30. Letters to the Securities Industry Association and NASD Small Firm Advisory Board grant relief to broker-dealers regarding quarterly disclosure requirements concerning the identity of market centers to which they route a large number of orders.