Clarity in the definition of market maker for fixed-income securities is important primarily because a clearer rule will encourage more dealers to take the risks associated with making a market and thus provide investors with greater liquidity. That greater liquidity will, in turn, foster a more efficient market and better allocation of resources.
The BDA has already contacted the SEC regarding a revision of the market maker definition. Click here for the BDA’s letter to the SEC.
The Bond Buyer article can be found here.
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