SEC staff provided additional economic analysis related to its proposed rule regarding the use of derivatives by registered funds and business development companies. The analysis is part of the comment file for a rule the SEC proposed in December 2015 designed to enhance regulation of the use of derivatives by registered investment companies, including mutual funds, ETFs and closed-end funds, as well as business development companies. The proposed rule would limit funds' use of derivatives and require them to put risk management measures in place, which would result in better investor protections. The analysis evaluates the internal consistency of commenters' suggested risk-adjustment and haircut schedules across asset classes and categories for purposes of risk-adjustment and risk-weighting with respect to the rule.
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