Securities and Exchange Commission economists are throwing coldwater on Wall Street's persistent complaints that post-crisisregulations have made markets more susceptible to shocks.

The market dynamics of recent years weren't necessarily causedby stricter rules imposed by U.S. and international regulatorsafter the 2008 financial meltdown, the SEC's Division of Economicand Risk Analysis said in a 300-plus page report to lawmakersreleased Tuesday. The report examines the extent to which measuressuch as the Volcker Rule and capital requirements associated withBasel III have affected a range of asset classes, includingequities, government and corporate bonds as well asderivatives.

The SEC economists said that their analysis didn't find adecline in total issuance of securities following the enactment ofthe 2010 Dodd-Frank Act. “It is difficult to disentangle the manycontributing factors that influence” the sale of new securities,they wrote, adding that private market sales of debt and equitieshave “increased substantially” in recent years.

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