IOSCO/MR/19/2016 Madrid, 5 August 2016 The Board of the International Organization of Securities Commissions (IOSCO) is seeking public comment on its consultation report entitled Examination of Liquidity of the Secondary Corporate Bond Markets, which was published today. IOSCO undertook this work in response to the concerns of some market participants about liquidity in this important sector. As described in the consultation report, IOSCO did not find substantial evidence showing that liquidity in secondary corporate bond markets has deteriorated markedly from historic norms for non-crisis periods. IOSCO also notes in the report that there is no reliable evidence that regulatory reforms have caused a substantial decline in market liquidity, although regulators continue to monitor closely the impact of regulatory reforms. Furthermore, IOSCO's study revealed meaningful changes to the characteristics and structure of secondary corporate bond markets, including changing dealer inventory levels, increased use of technology and electronic trading venues, and changes in the role of participants and execution models (i.e., dealers shifting from a principal model to an agency model).
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