SIFMA Submits Comments to SEC on Improving Liquidity in Fixed Income Markets

The Asset Management Group of SIFMA ("SIFMA AMG") submitted comments to the SEC recommending better market dialogue and regulatory changes to strengthen liquidity in the fixed income markets.

In the letter, SIFMA AMG explained that it has formed a Liquidity Working Group (the "Working Group") to develop and implement market and regulatory proposals that address changes in liquidity in most "foundational markets." Additionally, the letter outlines suggestions by the Working Group that SIFMA AMG believes will provide a helpful "starting point" for discussions between market participants and regulators about ways to enhance the financial markets, especially market liquidity.

In the letter, SIFMA AMG encouraged the SEC to continue its engagement with prudential regulators to address bank capital rules and discuss the consequences of the banking capital and regulatory requirements. It also explained that the SEC could "positively affect" capital formation and market liquidity by creating a standard framework for documentation to reduce the costly barrier of accessing capital. Streamlining the registration process and reducing regulatory uncertainty, according to SIFMA AMG, would allow asset managers to "create vehicles and investment opportunities" so that clients would be "more willing to consider investments."

See: SIFMA AMG Letter.