The five-member US Securities and Exchange Commission voted 4-1 on Wednesday to advance the new rules, proposed over a year ago as part of a broader effort to fix structural issues regulators believe are causing volatility and liquidity problems.
A central clearer acts as the buyer to every seller, and seller to every buyer, guaranteeing trades in case either party defaults. “Final rules will reduce risk across a part of capital markets in normal and stress times. That benefits investors, issuers, and the markets connecting them,” said SEC chairman Gary Gensler. The reforms mark the most significant changes to the world’s largest bond market in decades.