By Katanga Johnson

WASHINGTON (Reuters] -The U.S. Securities and Exchange Commission(SEC) proposed on Monday that the broker-dealer definition be expanded and principal trading firm (PTF) registrations must be made with the agency. The goal is to improve market resilience and even the playing field.

According to Wall Street regulator, the proposal is open to public consultation. It aims to broaden the definition of dealer to include “one that buys and sells securities in a regular pattern that provides liquidity to market participants.” This would encompass a wide range of activities that it considers essential to its monitoring systemic risk.

“We’ve had a few high-profile events on markets where significant PTF participation has occurred in recent years.” In a statement, Gary Gensler (SEC Chair) stated that Tremors on Treasuries markets at the start of the COVID crisis and in 2019 demonstrate the importance the SEC’s oversight over dealers.

Monday’s proposal states that any broker dealer who makes routinely comparable sales or purchases of similar securities, must register with this regulator.

The SEC stated that dealers who regularly express trading interests at or near market prices and are communicated in a manner that allows them to be accessible to market participants must register.

It is important to note that the regulator will also be looking into dealers who are able to take any incentive offered by liquidity-supplying trading venues.

High-frequency trading is a strategy for moving billions of dollars per second. Regulators argue that it poses risks to the U.S. bond market and the investors’ ability to value their assets fairly.

Gensler argued that the SEC should, in its role as regulator of U.S. markets, require such firms to comply with capital records and periodic inspections, just like corporate bonds and equities.