Regulation of Fixed Income Securities Markets in the United States

The author looks at the development and regulation of the fixed income securities market in the United States. The U.S. fixed income market is one of the oldest and most developed debt markets in the world. It is also one of the most heterogeneous, with the four key market segments-government securities, the securities of government-sponsored enterprises, municipal securities, and corporate debt securities-all being relatively large and deep. The author describes the evolution of fixed income market regulation in the United States, discussing both primary and secondary market regulation. She also looks at market integrity issues and the enforcement authority of the U.S. Securities and Exchange Commission, which is broad and has played an important role in the effectiveness of regulation. The author concludes that the fact that the U.S. fixed income market flourished for many years in the absence of regulation must be seen in a broader legal and regulatory context. While the debt market itself may have been unregulated, it operated within a larger framework of equity market regulation and enforcement, complemented by a long history of bank supervision that had a significant impact on its development. It is this context that permitted U.S. authorities to adopt regulation in stages, in response to differing demands and priorities. The dynamic nature of the regulation of the U.S. fixed income market-its development in response to market crises-underscores the need for regulation to remain responsive to market developments, and to be adapted to domestic constraints.

Bibliographic Details

Main Author:	Friedman, Felice B.
Format:	Policy Research Working Paper biblioteca
Language:	English en_US
Published:	World Bank, Washington, D.C. 2004-04
Subjects:	ACCOUNTING, ASSET-BACKED SECURITIES, BANK SUPERVISION, BANKRUPTCY, BANKRUPTCY LAW, BOND FUNDS, BONDS, CAPITALIZATION, COMMERCIAL BANKS, COMMON STOCK, CREDIT RISK, DEBT, DEBT SECURITIES, DEFICIT SPENDING, DEPOSITS, DISCOUNT RATES, ECONOMIC GROWTH, ECONOMISTS, EMERGING MARKETS, EXPENDITURES, FARM CREDIT, FEDERAL NATIONAL MORTGAGE ASSOCIATION, FINANCIAL INSTITUTIONS, FINANCIAL INTERMEDIARIES, FINANCIAL SAFETY, FINANCIAL SECTOR, FINANCIAL SERVICES, FIXED INCOME MARKETS, FRAUD, GOVERNMENT NATIONAL MORTGAGE ASSOCIATION, GOVERNMENT SECURITIES, HOME EQUITY, HOME MORTGAGE, HOUSING, HOUSING FINANCE, HOUSING FINANCE INSTITUTIONS, INCOME, INFLATION, INSIDER TRADING, INTEGRITY, INTEREST RATES, INTERNATIONAL DEBT, LEGISLATION, LIQUIDITY, MARKET INSTRUMENTS, MONETARY POLICY, MONEY MARKETS, MORTGAGE, MORTGAGE LOANS, MORTGAGE-BACKED SECURITIES, MORTGAGES, MUTUAL FUNDS, OFFERINGS, PENALTIES, PORTFOLIOS, REGULATORY FRAMEWORK, SAVINGS, SECURITIES, SECURITIES FIRMS, SECURITIES MARKETS, STATE REGULATION, STOCK EXCHANGES, STOCK MARKETS, STOCKS, TRANSPARENCY, UNDERWRITING SECURITIES MARKETS, SECURITIES EXCHANGE ACT, DEBT MARKETS, MUNICIPAL BONDS, CORPORATE DEBT,
Online Access:	http://documents.worldbank.org/curated/en/2004/04/4125165/regulation-fixed-income-securities-markets-united-states http://hdl.handle.net/10986/14113
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