Regulation of Fixed Income Securities Markets in the United States
The author looks at the development and regulation of the fixed income securities market in the United States. The U.S. fixed income market is one of the oldest and most developed debt markets in the world. It is also one of the most heterogeneous,...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, D.C.
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2004/04/4125165/regulation-fixed-income-securities-markets-united-states http://hdl.handle.net/10986/14113 |
| Summary: | The author looks at the development and
regulation of the fixed income securities market in the
United States. The U.S. fixed income market is one of the
oldest and most developed debt markets in the world. It is
also one of the most heterogeneous, with the four key market
segments-government securities, the securities of
government-sponsored enterprises, municipal securities, and
corporate debt securities-all being relatively large and
deep. The author describes the evolution of fixed income
market regulation in the United States, discussing both
primary and secondary market regulation. She also looks at
market integrity issues and the enforcement authority of the
U.S. Securities and Exchange Commission, which is broad and
has played an important role in the effectiveness of
regulation. The author concludes that the fact that the U.S.
fixed income market flourished for many years in the absence
of regulation must be seen in a broader legal and regulatory
context. While the debt market itself may have been
unregulated, it operated within a larger framework of equity
market regulation and enforcement, complemented by a long
history of bank supervision that had a significant impact on
its development. It is this context that permitted U.S.
authorities to adopt regulation in stages, in response to
differing demands and priorities. The dynamic nature of the
regulation of the U.S. fixed income market-its development
in response to market crises-underscores the need for
regulation to remain responsive to market developments, and
to be adapted to domestic constraints. |
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