What is meant by the statement that Regulation M deregulates rights offerings?
There no longer is a separate rule covering rights offerings. Rather, rights offerings will be treated under Regulation M like any other offering. Therefore, if the rights offering involves a distribution, as defined in Rule 100, the applicable restricted period of Rules 101 and 102 applies to bids for or purchases of the security being distributed (i.e., the security acquired through the exercise of the rights) and any reference security. Transactions in the rights themselves are not subject to Rules 101 or 102. However, Rule 104 applies to stabilization transactions in any security, including the rights.
