SEC’s Fixed Income Market Structure Advisory Committee discusses bond market liquidity in its inaugural meeting

Abstract

Purpose

The purpose of this paper is to summarize the January 11, 2018, Fixed Income Market Structure Advisory Committee’s (“FIMSAC”) inaugural meeting held at the US Securities and Exchange Commission (“SEC”).

Design/methodology/approach

This paper discusses the various topics covered at the inaugural FIMSAC meeting including the exploration of a variety of bond market liquidity issues, including the metrics for analyzing liquidity in the bond market and what these metrics mean for liquidity and dealer intermediation, electronic trading, exchange-traded funds (ETFs), transparency and potential policy responses to increase liquidity and the efficiency of the market.

Findings

The FIMSAC Chairman proposed the creation of subcommittees addressing modernization, fixed income ETFs and transparency.

Originality/value

This paper contains information on important topics raised by the fixed income market participants to the SEC and is helpful to all entities participating in the fixed income markets.

Citation

Owens, A. and Weldon, C. (2018), "SEC’s Fixed Income Market Structure Advisory Committee discusses bond market liquidity in its inaugural meeting", Journal of Investment Compliance, Vol. 19 No. 3, pp. 5-8. https://doi.org/10.1108/JOIC-04-2018-0035