CHAPEL HILL, N.C.--(BUSINESS WIRE)--Trading and Markets Staff of the Securities and Exchange Commission (“SEC”), on July 30, 2013, issued no-action relief for institutional asset managers participating in Carolina Capital Market’s (CCM) third-party fixed income research program. The letter confirms that transactions in fixed income securities can generate soft dollar credits to obtain eligible third-party fixed income research.
“Now, with the SEC’s clarification, there is no doubt that all fixed income managers should obtain third-party research through the CCM platform.”
“The asset manager investing in equities is familiar with the availability of acquiring third-party equity research under Section 28(e) safe harbor,” says Tom Shugrue, President of CCM. “With rising rates affecting fixed income portfolios, coupled with the abundance of high yield issuance bought for pension accounts, the SEC’s letter is especially pertinent is today’s market. With this clarification, the fixed income manager now understands that, as in equities, they can obtain the third party research to fulfill their fiduciary responsibilities.”
Shugrue, with partner, Steve Chaires, have been providing third-party fixed income research to asset managers for years. “I am delighted for the managers that have taken advantage of our program and had the foresight to gain access to third-party research to get greater returns for their clients,” says Chaires. “Now, with the SEC’s clarification, there is no doubt that all fixed income managers should obtain third-party research through the CCM platform."
About Carolina Capital Markets
Carolina Capital Markets is a non-positioning institutional fixed income broker/dealer owned by Tom Shugrue and Steve Chaires. CCM is a low cost executor acting as a broker for institutional asset managers, trading directly with desks of over 300 dealers.
Founded in 1994, CCM consists of former head traders/salesmen from Goldman, BofA, Credit Suisse and Smith Barney. CCM transacts approximately $40 BN in fixed income including corporates, ABS, MBS, treasuries and municipals. Customers include investment managers, pension funds, endowments, banks, and others. CCM is the leading provider of third-party fixed income research with bond trades.
More information about CCM can be found at www.ccmfit.com. The SEC’s recent no-action letter can be found at http://www.sec.gov/divisions/marketreg/mr-noaction/2013/carolinacapital-073113-15a.pdf.