Severe Volatility Will Plague Bonds Without Overhaul, Fink Says

BlackRock Inc. Chief Executive Office Laurence D. Fink said moments of severe volatility will continue to plague the corporate bond market unless regulators enforce a push toward more electronic trading.

“Regulators need to admit that we have changed the ecosystem of bonds and yet we are not seeing regulatory pressure to transform the bond market into more electronic trading,” Fink said in an interview with Bloomberg Television’s Erik Schatzker. “I am absolutely convinced we will have a day, a week, two weeks where we will have a dysfunctional market. It’s going to create some sort of panic, create uncertainty again.”