Trial now
JGB OPTIONS

Implied Vols Soften

AUD

Looking Through GDP

AUSSIE BONDS

No Major Reaction To GDP

RBA

Semi-Government Bond Purchase Offer Details

MNI: Fed Clamps Down on Senior Leaders' Stock Trading

MNI (Washington)
WASHINGTON (MNI)

Rules tightened after lawmakers raise questions about trading amid extraordinary market interventions.

Sign up now for free access to this content.

Please enter your details below and select your areas of interest.

The Federal Reserve on Thursday announced new rules prohibiting the purchase of individual securities, restricting active trading, and increasing the timeliness of public disclosures by policymakers and senior staff.

Senior officials will be limited to purchasing diversified investments like mutual funds, according to a statement from the Fed. The new restrictions also require 45 days advance notice for purchases and sales, prior approval for purchases and sales, and investments to be held for at least one year. Transactions will not be allowed during periods of heightened market stress.

Financial disclosures have shown former Dallas Fed President Robert Kaplan traded millions of dollars of individual stocks last year and ex-Boston Fed President Eric Rosengren bought and sold securities tied to real estate.