The Securities and Exchange Commission announced the formation and first members of its Fixed Income Market Structure Advisory Committee. The committee is comprised of a diverse group of outside experts, including individuals representing the views of retail and institutional investors, small and large issuers, trading venues, dealers, and self-regulatory organizations, among others.
The committee will be formally established on November 15 for an initial two-year term, which can be renewed by the Commission.
Its initial focus will be on the corporate bond and municipal securities markets. Members of the committee will provide advice to the Commission on the efficiency and resiliency of these markets and identify opportunities for regulatory improvements. Despite a rocky bond market, currently bond prices are high but their yields are low.
“During the past several years, the fixed income markets have changed significantly,” said Commissioner Kara Stein. “The Fixed Income Market Structure Advisory Committee should provide the Commission with new ideas about how to enhance the efficiency and resiliency of these evolving markets.”
“Individual investors are highly active in fixed income markets, both directly as retail investors and indirectly through various types of funds,” said SEC Chairman Jay Clayton. “This committee will help the Commission ensure that our regulatory approach to these markets meets the needs of retail investors, as well as companies and state and local governments.”
The Commission will announce further details about the committee in the near future.