Regulatory and Legal Aspects of Fixed Income Markets

In this section

• Regulatory Bodies and Market Framework
  Review the main U.S. regulators and rulemakers that oversee fixed income markets.
  • Securities and Exchange Commission (SEC)
    Understand the SEC’s role in regulating securities offerings, disclosure, and market conduct.
  • Financial Industry Regulatory Authority (FINRA)
    Review FINRA’s supervisory, conduct, and market oversight role in broker-dealer activity.
  • Municipal Securities Rulemaking Board (MSRB)
    Learn how the MSRB sets rules and standards for municipal securities professionals and markets.
• Key Legislation Affecting Fixed Income Markets
  Study the main federal statutes that govern securities issuance, trading, and post-crisis reform.
  • Securities Act of 1933 and Bond Offerings
    Review how the 1933 Act governs disclosure and registration in securities offerings, including bonds.
  • Securities Exchange Act of 1934 and Market Oversight
    Understand how the 1934 Act governs securities markets, intermediaries, and ongoing reporting.
  • Dodd-Frank Act and Fixed Income Markets
    Study how Dodd-Frank changed derivatives oversight, transparency, and post-crisis regulation.
• Bond Documentation and Covenants
  Review the bond documents, covenant protections, and default provisions that shape creditor rights.
  • Bond Indentures
    Understand the purpose and structure of bond indentures in fixed income securities.
  • Protective Covenants
    Study the covenant protections that help bondholders monitor risk and issuer behavior.
    • Affirmative Covenants
      Review affirmative covenants that require issuers to take specific protective actions.
    • Negative Covenants
      Understand negative covenants that restrict issuers from taking actions that increase creditor risk.
  • Events of Default and Remedies
    Learn what constitutes default under bond documents and what remedies may follow.
• Ethical Standards and Compliance
  Study the ethical and compliance obligations that support fair dealing and market integrity.
  • Insider Trading Laws
    Review the legal standards that prohibit trading on material nonpublic information.
  • Market Manipulation and Fraud
    Understand common forms of manipulation and fraud that regulators police in securities markets.
  • Compliance Programs and Best Practices
    Study the compliance controls and supervisory practices used to manage regulatory risk.