Sifma to terminate auction-rate securities indexes

By Jennifer Chiou

New York, March 13 - The Securities Industry and Financial Markets Association announced that it will wind down the publication of its suite of Sifma auction-rate securities indices.

To do so in an orderly fashion with proper notice to the market, each time the number of issues included in an index decreases to 10, Sifma will post a notice on its web site announcing that index will cease to be published in four weeks, according to a news release.

Sifma added that the first index to be terminated is the Sifma Auction-Rate Preferred One-Month Index, which will be published for the last time on April 8.

"It is critical that any Sifma-branded index be valid and reliable, which means there must be sufficient data points in the index so it can represent the state of the market," said Leslie Norwood, managing director and associate general counsel at Sifma.

"Due to the decrease in the amount of auction-rate securities issues outstanding and the outlook for future issuance, we recognize that there may not be enough data points to calculate these indices."

Termination notices can be found at www.sifma.org/capital_markets/auction-rate-securities.shtml.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.