Today the Commission addresses several important matters.[1]

Most prominently, we update Form N-Port.[2] N-PORT collects core information from registered investment companies about funds and their portfolio holdings - including information about counterparty and sector exposure, liquidity, volatility risk, leverage, and net asset value.[3] It provides the Commission with critical data, especially in times of market stress. The problem with the Form as it exists right now is the infrequency of reporting.

Today's amendments are aimed at fixing this timing issue.[4] Getting data on a more frequent basis means that, when there is potential for market disruptions - like those resulting from Covid, Russia's invasion of the Ukraine, the LIBOR transition, or regional bank failures - our staff will be armed with current and critical data to assess rapidly developing situations and craft targeted responses, instead of either relying on information that is up to 5 months stale, or starting anew by sending out mass data requests to registrants at a time that could require immediate action. We need sharp tools to protect investors and markets when circumstances are most volatile, not tools dulled by the passage of time. Putting current fund data into the hands of our capable staff to help avoid mass investor harm is a step that I'm happy to support. More generally, the provision of data on an improved timeline will enhance our oversight and monitoring of funds, even in non-volatile times.

Likewise, today's amendments will require funds to make public their monthly portfolio holdings 60 days after months-end.[5] Giving investors the ability to see more information about their holdings in registered funds is common sense to me. This will allow investors to better assess their investments (either on their own or with the help of third parties), make informed decisions about their money and long-term plans, and assess whether fund managers are hewing to their stated investment and risk strategies. Many fund managers currently understand that fund transparency is good for business, as they already voluntarily provide such information. Today's rule will provide investors with conformity, consistency, and clarity.

I understand the concerns that we have heard from certain fund managers relating to difficulties they may encounter in building or liquidating positions, or in copycat trading, as a result of public reporting. The final rule endeavors to mitigate those concerns. For example, there is still a delay in reporting - that delay has simply been reduced from up-to-5 months to up-to-3 months. Moreover, funds will still have the ability to anonymously build a position up to 5 percent of their portfolio.[6] And, as always, there will be an opportunity to report back to the Commission on real world experiences after the rule becomes effective.

Additionally, today we provide guidance on liquidity rules for open-end funds. Today's guidance - relating to the required frequency of liquidity classifications, the definition of cash, and highly liquid investment minimums - is based on the staff's ongoing observations, outreach and monitoring of the industry.

I support all of the measures we adopt today, which provide for greater transparency to both the Commission and the public, clarity to the industry about their practices, and hopefully, overall, safer and more robust markets.

Thank you to the staff in the Divisions of Investment Management, Economic Risk and Analysis, the General Counsel's office, among many others, who crafted this important release, which helps us fulfill our mission.