Fixed Income Market Structure Advisory Committee — Transparency Subcommittee
Summary Minutes of March 26, 2018 Call
The Transparency Subcommittee held a call on March 26, 2018 to discuss potential pilot programs on the impact of transparency rules on block trading in the corporate bond and municipal securities markets.
The call convened at approximately 3:00 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 first order of business was the parameters of a potential pilot study on the impact of trade reporting on corporate bond block trading. Specifically, the subcommittee discussed where dissemination caps should be set so that block trades above the caps would be subject, during the pilot period, to a 48-hour dissemination delay. After discussing the appropriate dissemination caps for both investment grade and high yield bonds, the subcommittee voted to set the dissemination caps for the pilot at $10 million for investment grade bonds and $3 million for high yield bonds.
The next order of business was whether the subcommittee should pursue a similar pilot study for municipal securities. The Subcommittee determined that at this time, based upon feedback from municipal securities market participants, there did not appear to be a consensus view that a block trading pilot study would be worthwhile in the municipal securities market.
The call concluded at approximately 4:00 p.m.