Even a short comment period on the new rule text would have helped to ensure that the rule prohibits securitization participants from betting against securitizations without stopping risk mitigating hedging, market-making, and other ordinary course transactions. I nevertheless continue to have concerns that we have not gotten the substance of the rule right. The rule covers, for example, transactions that do not result in the securitization participant’s interests being materially adverse to investors’ interests. The staff’s intense work on a technically difficult topic paid off in the form of a better rule than was proposed. I look forward to working with staff and affected market participants on implementing the rule.

Source: New York Times November 27, 2023 20:39 UTC