The Bond Markets are not the Equity Markets (Bloomberg)

We’re all pretty curious what the SEC is planning for the fixed income market over the next few years. It’s hard not to admit that bond market oversight is in need of some modernization given how much the market has changed in the past decade. My comments in this article restate a point made many times before my man other people – while a lot can be learned from the electronification of other markets, like equities, the markets are not the same and solutions (whether regulatory or technical) can’t be cut from one and pasted into the other.

“The bond market is still very different from the equity market in terms of how it trades and in terms of the market participants,” he said. “Bond markets are by and large institutional markets. So we have a very informed consumer if you will.”

There is also “post-trade reporting, and a lot of private sector work to improve pre-trade price transparency,” he added. “The buy side has pushed for it, and the platforms and data providers have really pushed to make pre-trade price transparency better. So I’m not sure we need to regulate something that’s effectively already happening.”

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