On September 16, AIMA submitted a petition for rulemaking to amend Rule 105 of Regulation M.  Rule 105 has not been updated in almost two decades and therefore fails to take into account market developments in how equity securities are offered to investors, particularly the dramatic growth of overnight offerings.  In short, our petition makes three general requests: (i) update the definition of “restricted period” in Rule 105 to account for overnight shelf offerings; (ii) restore the original intent of the Separate Accounts Exception that is consistent with the purpose and provisions of the Rule; and (iii) clarify the treatment of options exercises.

Please reach out to Daniel Austin with any questions.