Wednesday, August 16 2017, 5.40PM/ IOSCO
Corporate bond markets are a significant part of the global capital markets and a critical source of financing for economic growth. Since 2004, various developments have impacted corporate bond markets.
These include changes in regulation as well as the market structure; the entrance of new participants; a shift from the traditional dealer-based principal model to an agency based model; and the increasing use of technology.
In response to these significant changes, the Board of the International Organization of Securities Commissions (IOSCO) agreed to examine the liquidity of secondary bond markets and published its findings in March 2017.
Building on this report, the IOSCO Board also examined issues related to regulatory reporting, transparency and the collection and comparison of corporate bond markets data across IOSCO member jurisdictions. IOSCO published today its proposed recommendations for increasing transparency and the information on secondary corporate bond markets available to both regulators and the public.
The consultation report Regulatory Reporting and Public Transparency in the Secondary Corporate Bond Markets sets forth seven recommendations that update IOSCO´s 2004 report on Transparency of Corporate Bond Markets. It recommends that regulatory authorities should have sufficient information to perform effectively their regulatory functions.
It also recommends that the regulatory authorities should look at how they could enhance pre-trade transparency in corporate bond markets and implement regimes that require post-trade transparency, taking into account the potential impact pre- and-post trade transparency may have on market liquidity
It is IOSCO’s view that an increase in publicly available information on corporate bond trading supports the price discovery process and enables participants in the corporate bond markets to make more informed investment choices and better assess execution quality. These improvements have the potential to attract additional liquidity from both new and existing participants.
Comments on this consultation report should be submitted on or before 16 October 2017.
1. SEC Directs CMOs & Public Limited Companies to Comply with Executive Order No.004 of 2017 on VAIDS
2. SEC Issues Ultimatum to CMO’s, Experts and Professionals On Sponsored Individuals and Compliance Off
3. Treasury Releases Report To Reform US Financial System
4. Implementation Monitoring of the PFMI: Fourth Update to Level 1 Assessment Report
5. IOSCO Consults on Recommendations and Good Practices in Liquidity Risk Mgt of Funds
6. International Committees Complete the April 2015 Workplan
7. IOSCO Analyzes Potential Of Tech-Driven Change In The Securities Market Industry
8. How the US Regulatory Environment is Holding Back the Fintech Industry - A Report
9. Dubai Financial Services Authority Proposes Framework For Loan-based Crowdfunding for SMEs
10. Regulated Firms Should Make Full Use Of Regulatory Technology – Prepare For Rule Overhauls In The UK
11. US SEC Approves Plan To Create Consolidated Audit Trail For Tracking Markets
12. SEC Issues $20 Million Whistleblower Award