SEC chair: Technology not used to bond investors' advantage

Technology is being used in the bond market to the advantage of intermediaries but not for retail investors, SEC Chair Mary Jo White said Friday.

White, in prepared remarks for an address, said technology had made trading more efficient in the fixed income markets, but not for ordinary investors.

"[I]ts potential to achieve more widespread benefits for investors, including the broad availability of pre-trade pricing information, lower search costs and greater price competition, especially for retail investors, is not being realized," she said.

White said the SEC would work with the Municipal Securities Rulemaking Board and the Financial Industry Regulatory Authority in coming months on developing best-execution rules for corporate and muni bond markets.