Walter Wants SEC to Take Close Look at Fixed-Income Market Structure

NEW YORK - Securities and Exchange Commissioner Elisse Walter called Tuesday for the commission to take a long-term, deep-dive look at the fixed-income market structure.

Walter, who is spearheading a commission-wide review of the muni market, slated to culminate in a report with recommendations for legislative and regulatory changes, made the remarks during a municipal bond summit here, sponsored by the Securities Industry and Financial Markets Association. Walter, who was in the SEC’s Washington headquarters, addressed the conference by video.

“I do think it is important to move forward with ways to strengthen the base,” Walter said.

In particular, she said the staff report, preparation of which is underway, will focus on the short-term, including possible recommendations for improving the quality of disclosure and bolstering secondary market transparency.

But she would like to see the SEC undertake a “longer-term deeper dive study” of the fixed-income market structure, she said.

Walter added that she probably would not see the commission tackle such a review during her tenure as commissioner, but she would like to see some sort of marker before she leaves that the SEC intends to do it.

Walter was sworn in as commissioner on July 9, 2008. Her term expires in June 2012.

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