RECAP: BDA Fixed Income Market Structure Working Group Fly-in

Monday, June 17, 2019, several members of BDA’s Fixed Income Market Structure Working Group attended a Washington, D.C. fly-in focused on fixed income market disintermediation, business conditions, and specific regulatory issues impacting middle-market and regional broker-dealers. Meetings included SEC Chairman Jay Clayton, FINRA CEO Robert Cook, and MSRB President and CEO Lynnette Kelly, as well as SEC Division of Trading and Markets and Office of Municipal Securities’ senior staff.


Brad Winges, Hilltop Securities (working group co-chair)
Kevin Giddis, Raymond James (working group co-chair)
Mark Evans, Vining Sparks
Tom Goodrick, KeyBank
Eric Needleman, Stifel
John Reilly, Wells Fargo Advisors
Mike Nicholas, Kelli McMorrow and Brett Bolton, BDA staff
Michael Decker, BDA consultant

The group began the day with a working lunch with MSRB President and CEO Lynnette Kelly and senior staff. Topics discussed included market disintermediation issues, the MSRB’s work on pennying, and potential MSRB rule changes that may come from the SEC’s new Regulation Best Interest.

Next, the group traveled to the SEC to meet with a team from the Division of Trading and Markets and Office of Municipal Securities.  Members discussed market issues and concerns with PFM’s recent request that they be released from certain broker-dealer regulations when acting as a placement agent.  BDA members also laid out positions from BDA’s June 11, 2019 letter to FINRA regarding the potential TRACE pilot program for corporate bond block trade dissemination.

While meeting with Chairman Clayton, the group touched again on market disintermediation issues, which the Chairman acknowledged he has concerns about as well. Members also discussed the TRACE pilot letter, and Regulation Best Interest, particularly how it may touch on municipal products.

Members ended the day with a meeting at FINRA with CEO Robert Cook and senior staff.  Topics discussed included the TRACE pilot letter, and previously established FINRA regulations – such as retail confirmation mark-up rules – as well as forthcoming marketplace concerns

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