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April 10, 2013
TO: CLOSED-END INVESTMENT COMPANY MEMBERS No. 33-13FIXED-INCOME ADVISORY COMMITTEE No. 9-13
MUNICIPAL SECURITIES ADVISORY COMMITTEE No. 9-13
SEC RULES MEMBERS No. 37-13
SMALL FUNDS MEMBERS No. 26-13 RE: SEC APRIL 16TH ROUNDTABLE ON FIXED-INCOME MARKETS
The Securities and Exchange Commission recently announced that it is holding a roundtable on ways to improve the transparency and efficiency of the fixed-income markets. [1] The roundtable will consist of four panels. The first two panels will focus on the current state of these markets. The first panel will focus on the characteristics of the municipal securities markets. Discussion topics are expected to include the levels of price transparency and liquidity, the ways in which transactions are effected, transaction costs for individual and institutional investors, and the relationship between the primary offering process and secondary market trading. The second panel will discuss the characteristics of the corporate bond and asset-backed securities markets and how they compare to the municipal securities market. The impact of FINRA’s dissemination of transaction information through the TRACE system as well as the liquidity characteristics of the corporate bond market will be discussed. This panel also may discuss the market for asset-backed securities and other fixed-income products.
The two afternoon panels will focus on possible future improvements to the fixed-income markets. Panelists on the third panel will discuss potential steps to improve the transparency, liquidity, efficiency, or other structural aspects of the municipal securities market. Discussion topics are expected to include ideas presented for consideration in the SEC’s 2012 Report on the Municipal Securities Market (“Report”), such as those that could impact pre-trade and post-trade price transparency and alter brokers’ existing obligations to provide investors with best execution and fair pricing. [2] The last panel will discuss potential steps to improve the corporate bond and asset-backed securities markets. That discussion is expected to include the extent to which, if at all, any of the ideas in the Report may be relevant to the corporate bond and other fixed-income markets.
The panels include, among others, regulators, academics, and representatives of investment companies, broker-dealer firms, and investment advisory firms.
Dorothy M. Donohue
Deputy General Counsel - Securities Regulation
endnotes
[1] See Press Releases 2013-55 (announcing the panelists) and 2013-48 (publishing the agenda), both of which are available on the SEC’s website at http://www.sec.gov/news/press.shtml.
[2] The SEC’s 2012 Report on the Municipal Securities Market is available on the SEC’s website at http://www.sec.gov/news/studies/2012/munireport073112.pdf.