Canada’s investment industry urges regulators to ‘step back’ from strained credit markets

Proposed new rules will further spook bond investors who are already rushing for the door 'in an unprecedented collapse in liquidity,' warns Canada's investment industry.

Canada\’s investment industry association is urging regulators to back off shaky global credit markets.

Liquidity in global bond markets has already been low, and proposed reforms?“run considerable chance of further debilitating” the credit market, warns Ian Russell, leader of the Investment Industry Association of Canada.

Canada is relocating lockstep with European and U.S. regulators to overhaul the financial system, and the latest measures are aimed at increasing transparency and consumer protection in credit markets. But these?planned global reforms pushed by regulators such as the U.S. Securities and Exchange Commission \”will likely aggravate the liquidity condition in secondary markets,” Russell said within an industry letter to be widely circulated on Thursday.