Buy-side firms doubt SEC initiative will fix bond markets

Despite increased electronic trading, liquidity worsening in some corporate bonds

Trading screen
Buy-siders say increased e-trading will not guarantee better liquidity

New rules on electronic trading in fixed-income markets cannot be counted on to boost volumes or improve liquidity, say fund managers.

The US Securities and Exchange Commission’s move to establish a new fixed-income market structure advisory committee is widely seen as a first step towards formulating new regulations governing the asset class, such as a national best bid and offer (NBBO) rule for corporate bonds.

“I think the SEC is bothered by the fact that in equities, if one stock exchange

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