Statutory Exemption for Cross-Trading of Securities [02/12/2007]

This is an interim final rule regarding the new statutory exemption on cross-trading in the Pension Protection Act (PPA).  It exempts the purchase and sale of a security between a plan and any other account managed by the same investment manager if certain conditions are satisfied.  Among other requirements, the investment manager must adopt, and effect cross-trades in accordance with, written cross-trading policies and procedures that are fair and equitable to all accounts participating in the cross-trading program. This interim final rule would affect employee benefit plans, investment managers, plan fiduciaries and plan participants and beneficiaries.