The guidance matches past patterns which account for diminished trading volumes and quiet market activity during the extended Easter weekend period (Source: SIFMA; Reuters).

As part of its overall holiday-closure strategy SIFMA seeks to maintain fixed-income liquidity and manage risks in global markets with special attention to major trading centres in the US, UK, and Japan.

Details of the Recommendation

The recommendation applies to fixed-income products denominated in US dollars such as government securities, mortgage-backed products, asset-backed products, investment-grade corporate bonds, high-yield corporate bonds, municipal bonds, and money-market instruments (Source: SIFMA).

Although SIFMA's guidance doesn't have mandatory authority, firms operating in these segments should implement the closure to maintain liquidity consistency and operational alignment. According to SIFMA, firms retain the choice to continue operations while maintaining adaptability for unique market factors.

Scope of Affected Firms

About 16,000 firms including retail investment advisors and mortgage intermediaries together with MiFIDPRU entities, asset managers, and peer-to-peer lenders are projected to adhere to SIFMA's recommendations. These businesses receive temporary relief during the closure period allowing them to postpone return submissions and certain regulatory filings until 21 April without any penalties (Source: SIFMA).

The holiday window reduces administrative responsibilities for companies, which enables them to maintain business operations.

Historical Context and Comparisons

SIFMA’s holiday schedules for 2025 and 2026 demonstrate the organisation’s longstanding practice of recommending market closures on Good Friday and Easter Monday. These guidelines have traditionally supported market stability and established trading standards during major holidays in the US, UK, and Japan (Source: SIFMA).

The London Stock Exchange (LSE) determines its market closures independently during UK Bank Holidays while SIFMA establishes coordinated holiday recommendations across the financial industry. Market operations become consistent and liquidity providers and investors receive predictable frameworks through these measures (Source: London Stock Exchange; SIFMA).

Market Impact and Industry Response

Liquidity providers and market makers in fixed income markets typically follow SIFMA's closure recommendations to maintain market stability and minimise volatility before extended holidays.

The subdued trading activity from previous years confirms this trend because traders used quiet periods to calibrate risk and plan strategies (Source: Reuters).

The consultation process revealed stakeholder consensus in favour of eliminating outdated filing requirements. These measures reflect a regulatory trend to decrease administrative burdens in fixed-income markets while sustaining strong compliance structures (Source: SIFMA).

Observance in UK Financial Markets

UK stock, derivatives and money-market venues will adhere to the closure schedules as directed by SIFMA's guidance. Trade activity in sterling and global US dollar markets will likely decrease before the long weekend and remain stable while investors modify their investment portfolios (Source: Reuters).

The twin market closures require global investors to engage in extra planning to effectively manage their cross-border trade operations. Organisations that oversee these transactions should conduct liquidity pattern analyses and synchronise their approaches with the closure timeline to avoid disruptions.

Closing Remarks

SIFMA's full market closure recommendation for Good Friday and Easter Monday demonstrates its dedication to maintaining effective trading environments and supporting market stability. SIFMA maintains its crucial position in alleviating structural pressures within vital trading segments by synchronising operational practices throughout major holiday seasons.

Businesses facing these closures can utilise the time to adjust their risk frameworks and reassess their operational strategies before entering the busy trading season. Companies should seek advice from their fixed-income desks and modify their operational plans to ensure continuous business functionality.

Subscribe to Advisors Gateway for market updates or check SIFMA’s official holiday schedule for particular trading timelines.