Fixed Income Market Structure Advisory Committee — Credit Ratings Subcommittee

Summary Minutes of October 11, 2019 Call

The Credit Ratings Subcommittee held a telephonic meeting on October 11, 2019.

The call convened at approximately 11:00 a.m. The following Subcommittee Members were on the call:

Amy McGarrity
Michael Heaney
Dan Allen
John Bagley
Tom Gira
Larry Harris
Ananth Madhavan
Lynn Martin

The following other person joined the call:

Mahesh Kotecha, Structured Credit International Corp.
Roy Weinberger, Structured Credit International Corp.
Neil Baron, Consultant

The following staff from the Division of Trading and Markets joined the call:

Randall Roy
Elizabeth Baird
David Dimitrious
Ben Bernstein

The following staff from the Office of Credit Ratings joined the call:

Annemarie Ettinger
Harriet Orol

The following staff from the Office of Compliance Inspections and Examinations joined the call:

Matthew Keeler

The following staff from the Division of Economic and Risk Analysis joined the call:

Diana Knyazeva

Matthew Keeler, who was an analyst at the GAO before joining the SEC, discussed his work on the 2010 and 2012 GAO reports related to alternative compensation models for nationally recognized statistical rating organizations, or NRSROs. Randall Roy then provided an overview of the SEC staff’s work leading to the publication of the 2012 Report to Congress on Assigned Credit Ratings. Neil Baron then discussed his proposed alternative compensation model for NRSROs. Mahesh Kotecha and Roy Weinberger then discussed their proposed alternative compensation model for NRSROs.

The call concluded at approximately 12:30 p.m.