Muni Regulators May Force Brokers to Disclose Bond Trade Prices
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U.S. regulators may require brokers to disclose the prices paid for municipal bonds that are resold to their customers, a shift aimed at injecting more transparency into the market.
The Municipal Securities Rulemaking Board, which writes regulations for the $3.7 trillion market, said today it will solicit comments on whether brokers should be required to reveal what they paid for bonds that are then resold on the same day. It would be a first step toward imposing new obligations on brokers, a process that takes months.