A 48-Hour Reporting Delay Could Be Coming for Corporate Debt
- Finra might test impact of postponing block trade disclosure
- Decision follows complaints from investors about liquidity
Source: Getty Images
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The Financial Industry Regulatory Authority will likely test the market impact of delaying the disclosure of large corporate bond trades after some of the biggest investors argued that such a move would improve liquidity.
Finra last week proposed running a pilot program that would give traders 48 hours before having to reveal their so-called block trades to other investors. The effort would allow the industry-funded brokerage regulator, which is overseen by the U.S. Securities and Exchange Commission, to evaluate how delayed transparency might affect corporate bond trading.