13. Regulatory and Legal Aspects

In this section

• 13.1 Regulatory Bodies and Framework
  • Securities and Exchange Commission (SEC)
    Explore the pivotal role of the Securities and Exchange Commission (SEC) in regulating U.S. securities markets, ensuring investor protection, and maintaining market integrity.
  • Financial Industry Regulatory Authority (FINRA)
    Explore the role of FINRA in regulating broker-dealers and ensuring fair securities markets. Understand its functions, rules, and impact on bond trading.
  • Municipal Securities Rulemaking Board (MSRB)
    Explore the role and functions of the Municipal Securities Rulemaking Board (MSRB) in regulating the U.S. municipal securities market, ensuring transparency, and protecting investors.
• 13.2 Key Legislation Affecting Fixed Income Markets
  • Securities Act of 1933: Ensuring Transparency and Investor Protection in Securities Offerings
    Explore the Securities Act of 1933, a cornerstone of U.S. securities regulation, focusing on transparency, registration requirements, and investor protection in securities offerings.
  • Securities Exchange Act of 1934: Comprehensive Guide for Fixed Income Markets
    Explore the Securities Exchange Act of 1934, its impact on fixed income markets, and key regulations for securities trading, broker-dealers, and market integrity.
  • Dodd-Frank Act: Impact on Fixed Income Markets and Regulatory Reforms
    Explore the Dodd-Frank Act's influence on fixed income markets, including key provisions like the Volcker Rule and the regulation of OTC derivatives.
• 13.3 Bond Documentation and Covenants
  • Understanding Bond Indentures: Key Elements of Bond Documentation
    Explore the critical role of bond indentures in fixed income securities, detailing their structure, purpose, and the responsibilities of trustees.
  • 13.3.2 Protective Covenants
    • Affirmative Covenants in Bond Markets: Ensuring Financial Health and Security
      Explore the role of affirmative covenants in bond markets, their importance in maintaining issuer financial health, and how they protect bondholders.
    • Negative Covenants in Bond Documentation: Understanding Restrictions and Protections
      Explore the intricacies of negative covenants in bond documentation, their role in limiting issuer activities, and their importance in protecting bondholders' interests.
  • Events of Default and Remedies in Bond Markets
    Explore the intricacies of events of default and remedies in bond markets, focusing on circumstances that trigger default and the protective measures available to bondholders.
• 13.4 Ethical Standards and Compliance
  • Insider Trading Laws: Protecting Market Integrity and Investor Confidence
    Explore the intricacies of insider trading laws, their impact on market integrity, and the responsibilities of industry professionals in preventing unethical trading practices.
  • Market Manipulation and Fraud in Bond Markets
    Explore market manipulation and fraud in bond markets, including pump and dump schemes, spoofing, and regulatory measures to prevent unethical practices.
  • Compliance Programs and Best Practices
    Explore the crucial role of compliance programs in financial institutions, focusing on policies, training, monitoring, and reporting to ensure adherence to regulations and foster integrity.