At the SIFMA annual meeting, SEC Chair Gary Gensler highlighted potential areas for reform across the Treasury, non-Treasury fixed income, equity and security-based swaps ("SBS") markets.
For the Treasury market, Mr. Gensler asked staff to (i) reconsider which Treasury trading platforms should be brought under the purview of the SEC and (ii) consider central clearing reforms in the Treasury cash and repo markets.
For the non-Treasury fixed income market, Mr. Gensler asked staff to consider (i) reforms to post-trade transparency by broadening the dissemination of pre-trade corporate bond price information, and (ii) enhancing money market funds' resiliency during times of stress.
For the equity markets, Mr. Gensler asked staff to consider (i) shrinking tick sizes, reevaluating the National Best Bid and Offer, and leveling competition between trading venues and wholesalers, (ii) digital engagement practices rulemakings for investment advisers and broker-dealers and (iii) a proposal for shortening the settlement cycle.
For the SBS market, Mr. Gensler asked staff to consider (i) an execution facility regime consistent with that of the CFTC and (ii) mandates pursuant to Section 9(j) ("Prohibition against manipulation of security prices related to SBS") of the Exchange Act.
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