Dictionary

Rule 144A

From the Collaborative Bond and Money Market Data Portal.
 
In the Collaborative Bond and Money Market Data Model, the Rule 144A classification appears within the field Distribution which is part of the universe of Bond and Money Market Instruments.
 
Definition: Rule 144A of the Securities Act of 1933, as amended (the "Securities Act") provides a safe harbor from the registration requirements of the Securities Act of 1933 for certain private resales of minimum USD500,000 of restricted securities to Qualified Institutional Buyers ("QIBs"), which generally are large institutional investors that own at least USD100 million in investable assets.
 
When a broker or dealer is selling securities in reliance on Rule 144A, it may make offers to non-QIBs through general solicitations following an amendment to the rule in 2012.

Since its adoption, Rule 144A has greatly increased the liquidity of the securities affected. This is because the institutions can now trade these formerly restricted securities amongst themselves, thereby eliminating the restrictions that are imposed to protect the public. Rule 144A was implemented in order to induce foreign companies to sell securities in the US capital markets. For firms registered with the SEC or a foreign company providing information to the SEC, financial statements need not be provided to buyers. Rule 144A has become the principal safe harbor on which non-U.S. companies rely when accessing the U.S. capital markets.

Rule 144A should not be confused with Rule 144, which permits public (as opposed to private) unregistered resales of restricted and controlled securities (within certain limits.)
 
Based on available data, on the 14th of September 2016, the size of the Rule 144A market was USD1.68tn.
 
For information on 144A issues, please use the Instrument search tool.
For information on the current size of 144A outstandings, please use the data sheet tool.
For information on the composition of 144A outstandings, please use the issuer search tool.
For information on active dealers in the 144A securities, please use the dealer search tool.
For information on active investors in 144A securities, please use the fund search tool.
 

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