Fed adopts broad new rules barring officials from most trades
Most of the new rules will take effect on May 1 and officials will have one year to bring their personal portfolios into alignment.
www.politico.com
This is some interesting, and very surprising, news. Starting on May 1st, Fed officials (meaning board members, regional Fed bank presidents, staff, and the immediate families of those groups) will no longer be able to invest in anything other than diversified mutual funds and exchange-traded products. Here's a list of things that are not part of those two groups.
-individual bonds
-agency securities
-derivative contracts
-foreign currency
-cryptocurrency
In addition, the new rulings prohibit short sales on securities, as well as purchasing securities on margin. After May 1st, officials will have 1 year to bring their personal portfolios in line with the requirements. In addition, effective July 1st, they will have to provide 45 days' notice before buying or selling permitted assets and will be forced to hold those assets for a year. In addition, bank presidents will need to post their trades on their respective websites within 30 days for the sake of transparency.