Fixed Income Market Structure Advisory Committee — Transparency Subcommittee
Summary Minutes of March 20, 2018 Call
The Transparency Subcommittee held a call on March 20, 2018 to discuss a potential pilot program on the impact of transparency rules on block trading in the corporate bond market.
The call convened at approximately 5:30 p.m. via telephone. The following Subcommittee Members were on the call:
The following staff from the Division of Trading and Markets were on the call:
The following staff from the Office of Municipal Securities were also on the call:
The following staff from the Division of Economic and Risk Analysis were also on the call:
The subcommittee discussed the pros and cons of various design alternatives for a potential pilot study on the impact of trade reporting on corporate bond block trading. A majority of the subcommittee voted to further pursue a pilot study that would, for a fixed period, delay reporting and raise the dissemination caps for block trades across all corporate bond issues. The purpose of the pilot study would be to determine whether these changes in the reporting rules cause any changes in liquidity or other market characteristics in corporate bond block trades. The subcommittee determined that a strawman of the pilot study’s parameters would be circulated prior to the next subcommittee meeting to facilitate a more detailed discussion of the pilot study. The subcommittee also decided to reach out to additional municipal securities market participants to determine whether a similar pilot study on block trading in municipal securities might be worthwhile.
The call concluded at approximately 6:45 p.m.