Capital Markets Report: Modernizing and Rationalizing Regulation of the U.S. Capital Markets
The Treasury Secretary’s preparation of periodic reports to President Trump on the extent to which financial laws and regulations promote and support the President’s Core Principles is an important opportunity to evaluate whether the laws and regulations that govern the U.S. capital markets can be modernized or otherwise improved to foster economic growth and make regulation efficient, effective and appropriately tailored. SIFMA strongly supports the Core Principles as the right framework for approaching these
policy discussions.
This White Paper in response to the Presidential Executive Order on Core Principles for Regulating the United States Financial System covers those key topic areas relating to the U.S. capital markets where the SIFMA membership believes that regulation can be modified to spur market activity, increase market access or lower costs for market participants, without sacrificing investor protection or compromising systemic stability.
See Also: Presidential Executive Order on Core Principles for Regulating the United States Financial System
Excerpt
Executive Summary
The Treasury Secretary’s preparation of periodic reports to President Trump on the extent to which financial laws and regulations promote and support the President’s Core Principles is an important opportunity to evaluate whether the laws and regulations that govern the U.S. capital markets can be modernized or otherwise improved to foster economic growth and make regulation efficient, effective and appropriately tailored. SIFMA strongly supports the Core Principles as the right framework for approaching these policy discussions.
This White Paper covers those key topic areas relating to the U.S. capital markets where the SIFMA membership believes that regulation can be modified to spur market activity, increase market access or lower costs for market participants, without sacrificing investor protection or compromising systemic stability.
Each topic in this White Paper is covered in a separate Chapter and includes: equity market structure; fixed income markets in U.S. Treasuries, corporate credit and municipal securities and infrastructure financing; securitization; capital formation; research rules and regulation; derivatives; the role of self-regulatory organizations; and fiduciary regulation. Each Chapter describes developments or problems in each topic area and explains SIFMA’s proposed solutions and the reasons behind them in detail. A short-form grid of the recommendations is set forth at the end of this Executive Summary.
This Executive Summary begins by explaining the strength and importance of U.S. capital markets. It then describes the critical role that appropriately tailored regulations play in making U.S. capital markets the strongest and deepest in the world, but identifies recent worrisome trends that suggest that these regulations should be modified or modernized to best serve their purposes. Finally, this Executive Summary identifies adjustments that can be made to reverse these trends.