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Gary Gensler, chair of the Securities and
Exchange Commission (SEC), also wants to impose greater
transparency on the corporate bond, municipal bond and
asset-backed securities market, which combined are worth about
$28 trillion, he wrote in the testimony submitted to the Senate
Banking Committee.
Gensler will appear before the congressional panel on Tuesday to
field questions on his agenda for the regulator.
"I believe we can enhance disclosures in this area, better
enabling pensions and others investing in these private funds to
get the information they need to make investment decisions,"
Gensler wrote.
In the bond markets, meanwhile, trading data is often
insufficient, causing liquidity crunches during times of stress,
which was evident during last year's market turmoil sparked by
the COVID-19 pandemic.
"This market is so critical to issuers. It is nearly 2.5 times
larger than the commercial bank lending of about $10.5 trillion
in our economy," Gensler wrote in his testimony, without
elaborating on the changes he may pursue.
Addressing fund fees and the bond market add to an already
jam-packed agenda for the SEC, which is working on new corporate
climate change-risk disclosures, cracking down on blank-check
company deals, and overhauling several aspects of the U.S.
equity market structure.
Also on Monday, Gensler, writing in a Wall Street Journal op-ed,
urged Chinese companies to open up their books and records to
SEC scrutiny or risk being kicked off U.S. exchanges.
(Writing by Michelle Price; Editing by Leslie Adler)
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