This will be the foundation for the development of a vast body of information and disclosure for fixed income securities.
This should be like equity tickers
Bank, Broker, Asset Manager, etc. All Municipals only $56,750 per year
<< Expand “equivalent disclosure” to all rated asset classes >>
All raters should have non-public information not just those compensated to rate the issue.
For example, Lehman Brothers and AIG, should have provided non-public information to all NRSROs rather than the few they compensated.
The SEC should examine whether Lehman and AIG were “ ratings shopping ” leading up to their failures.
<< Require public companies to disclose outstanding securities >>
All entities issuing public securities should file detailed disclosure with the SEC outlining all securities outstanding and the exchanges, ATS, ECN or OTC markets on which the filing company has securities.
This would give market participants the information to assess the full capital structure and risk profile of the issuing entity.
With this level of disclosure it would be possible to assess the liquidity of an issuers securities.
<< Create a facility for retail investors to purchase Treasury securities >>
The Treasury Department, through the Federal Reserve, should make Treasury securities available for sale and purchase on an ongoing and regular basis to retail investors similar to their sales to primary dealers.
It is very good that retail can participate in auctions (TreasuryDirect) but should have available daily trading capability
The New York Stock Exchange Bonds platform could be utilized
<< More oversight and transparency for all trading venues >>
The SEC should require more disclosure of the various alternative trading systems, over-the-counter liquidity platforms and crossing networks.
Access to these platforms should be made more universal.
Trading venues should publish liquidity statistics for securities traded.
<< Trade and clear cash and derivative products through multilateral platforms >>
An integrated multilateral trading and clearing model will offer the best route to improved risk management and enhanced efficiency for all participants in the credit derivatives market and also for the underlying companies on which credit derivatives are based.
This will offer regulators the immediate information and transparency they need to prevent fraud, manipulation and market abuse.
T hese central utilities will greatly reduce information asymmetries and protect the broader financial markets against systemic risk .