The Regional Bond Dealers Association is recommending that the Securities Industry and Financial Markets Association discontinue its practice of recommending early closes on the last business day before most holidays, saying it hurts liquidity on those days.

In a letter to SIFMA, the RBDA suggested it cancel its already recommended early closes in 2009 and 2010, and limit them to the day after Thanksgiving and Christmas Eve, when equity markets also close early. SIFMA recommended 11 early closes for this year, including five Fridays ahead of a Monday holiday.

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