New SEC Fixed Income Committee to cover liquidity issues this week


By Flora McFarlane.

The Securities and Exchange Commission (SEC)’s Fixed Income Market Structure Advisory Committee, formed in November 2017, will hold its first meeting on 11 January, discussing liquidity in the bond markets.

The SEC set out the aims of the Committee upon its formation, with an initial focus on the corporate bond and municipal securities markets, as well as advising the Commission on the fixed income environment and regulatory opportunities.

This first meeting is focused on various administrative items, as well as a discussion on liquidity in the bond markets. The meeting will be held on Thursday, 11 January 2018, at the Commission’s headquarters in Washington DC.

Following a review and consideration of proposed bylaws there will be a discussion of ‘Bond Market Liquidity Conditions Research’ moderated by Michael Heaney, the committee chairman with input from Kevin McPartland, head of Market Structure and Technology Research, Greenwich Associates; Jeff Meli, co-head of Research, Barclays; and Sonali Theisen, global head of Market Structure and Data Strategy, Global Credit & Securitized Markets at Citigroup

Market participants, consisting of Paul Jakubowski, global head of credit at Vanguard, Drew Mogavero, head of US flow credit trading at Barclays; Richie Prager, head of Trading, Liquidity and Investments Platform, BlackRock; and Jim Switzer, global head of credit trading at AllianceBernstein will then give their perspectives on bond market liquidity, followed by a discussion.

Established initially on a two-year basis, the Committee is seen as an important step in exploring the development and efficiency of fixed income markets. The former SEC chairman, Mary Jo White, has previously highlighted the problems of the markets, demanding greater regulatory requirements.

Current SEC chairman, Jay Clayton, hopes that the Committee will facilitate a regulatory approach that is beneficial for retail investors, as well as companies, and state and local governments.

Michael Heaney, non-executive director of Legal and General Investment Management Americas has been appointed as the initial committee chairman. Other members come from asset management firms, pension funds, financial services companies and local government.

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