Failed-Trade Charge for Mortgage Bonds Proposed, Pimco Balks
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Dealers and investors that fail to complete trades in agency debt and mortgage bonds may pay as much as 3 percent in penalties, a fee Pacific Investment Management Co. says would damage the market.
The Treasury Market Practices Group, which the Federal Reserve Bank of New York helped form in 2007 to offer advice on debt markets, today proposed the charges. That followed the introduction of a similar practice for U.S. government bonds that the organization backed in 2009.