The private debt market and capital market regulation

Despite experiencing sustained growth since 2005, the private debt market is lagging behind in terms of size, maturity and concentration in comparison with the global trend. In the primary market, the lengthy issuance process discourages firms from issuing securities. Moreover, issuers face substantial requirements and additional delays before their securities can be purchased by institutional investors. In the secondary market, it is necessary to increase the effectiveness of the trading platform and the clearing and settlement system, and to introduce a centralised information system in order to boost liquidity and enable price formation. Communication and co- ordination between the different superintendencies should be improved to reduce transaction costs for the market operators. The risks incurred by financial groups must also be suitably managed.