2004年-世界发展银行全球_Regulation_of_Fixed_Income____________Securities_Markets_in_the_United_States_55页_392kb

Summary of Regulation of Fixed Income Securities Markets in the United States

Core Content

The United States fixed income securities market is one of the oldest and most developed in the world, characterized by its diversity and size. It consists of four major segments: government securities, securities of government sponsored enterprises (GSEs), municipal securities, and corporate debt securities. Despite the lack of comprehensive regulation in the primary market, the US market has flourished due to a broader regulatory framework that includes equity market oversight, bank supervision, and the SEC's strong enforcement powers.

Main Viewpoints

• The US fixed income market is highly heterogeneous, with distinct regulatory approaches for each segment.
• Regulation is not uniform, varying by the type of issuer, the nature of the instrument, and the market structure.
• The SEC plays a central role in enforcing securities laws, with broad powers that allow it to bring civil actions, impose penalties, and ensure market integrity.
• Market integrity issues, such as insider trading and market manipulation, are addressed through the SEC's authority and the rules of self-regulatory organizations (SROs).
• Regulation has evolved in response to crises, indicating a dynamic and adaptive regulatory environment.
• The lack of direct regulation in the primary market for certain segments has been offset by secondary market oversight, including intermediary regulation and transparency requirements.

Key Information

Market Overview

• The US fixed income market had a total outstanding debt of $17.593 trillion at the end of 2002, which was 168.4% of GDP.
• The mortgage-related securities market was particularly notable, with $2.3 trillion in total issuance in 2002, a 40% increase from 2001.
• Corporate debt issuance declined by 26% in 2002, but the market remains larger than any other country.
• Municipal securities are among the most heavily regulated, with over 50,000 issuers and 1.5 million different issues.

Key Regulators

• US Department of the Treasury:

  • Issues government securities.
  • Manages public debt and federal finances.
  • Has the authority to borrow funds under the Liberty Bond Act.

• Federal Reserve System:

  • Sets monetary policy and supervises banks.
  • Conducts open market operations, primarily using Treasury securities.
  • Maintains financial stability and provides financial services to the government and public.

• US Securities and Exchange Commission (SEC):

  • Protects investors and ensures market integrity.
  • Enforces federal securities laws through civil actions, penalties, and disgorgement.
  • Supervises SROs and securities firms.
  • Has broad enforcement authority, including the ability to bar or suspend individuals from corporate roles.

• Office of Federal Housing Enterprise Oversight (OFHEO):

  • Oversees Fannie Mae and Freddie Mac.
  • Ensures capital adequacy and financial safety.
  • Conducts examinations and stress tests.

• Self-Regulatory Organizations (SROs):

  • Include the NYSE, NASD, and MSRB.
  • Operate under SEC oversight.
  • Have varying degrees of authority, with the NYSE and NASD being more active in market surveillance and enforcement.

Regulatory Framework

• The development of the US fixed income market is closely tied to the financing needs of the country and market crises.
• Primary market regulation is limited for government and municipal securities, but secondary market regulation is extensive.
• Disclosure requirements are a core component of the SEC's oversight, ensuring transparency for publicly offered securities.
• Intermediary regulation is important in the absence of primary market regulation, including broker-dealer registration, financial responsibility, and customer protection rules.

Market Integrity Issues

• The SEC addresses antifraud provisions, market manipulation, and insider trading.
• The SEC's enforcement authority is unusually broad, allowing it to take action against individuals and firms.
• SROs also play a role in real-time surveillance and discipline of market participants.

Market Infrastructure and Rating Agencies

• Market infrastructure includes centralized bond markets, electronic trading platforms, and regulatory oversight.
• Rating agencies are critically important but currently under scrutiny for their role and regulation.
• The report also touches on the regulation of bond funds, highlighting the need for continued adaptation of regulatory frameworks.

Conclusion

The US fixed income market has flourished despite the lack of comprehensive regulation in the primary market. This is due to the broader regulatory context, including equity market regulation, bank supervision, and the SEC's enforcement powers. The dynamic nature of regulation in the US fixed income market underscores the need for flexibility and adaptation to market developments and domestic constraints. The regulatory system is complex and fragmented, but cooperation among regulators is essential for effective oversight.