SEC Issues Proposal to Increase Transparency for Traders of Government Securities

The Securities Exchange Commission today issued a proposal to enhance the operational transparency, system integrity and regulatory oversight for alternative trading systems that trade government securities as well as repurchase and reverse repurchase agreements on government securities.

Under the proposal, government securities alternative trading systems would be required to file comprehensive public disclosures that would inform market participants about potential conflicts of interest arising from trading activities of the ATS’s broker-dealer operator or its affiliates, as well as provide information about the ATS’s operations and fees.

The SEC also issued a concept release soliciting public comment on the regulatory framework for electronic platforms that trade corporate debt and municipal securities. Comments will be due 60 days after publication in the Federal Register.