FINRA and the MSRB Release Companion Proposals That Would Require Additional Disclosures for Transactions in Fixed Income Securities
Friday, November 21, 2014

On November 17, the Financial Industry Regulatory Authority, Inc. and the Municipal Securities Rulemaking Board (MSRB) released companion proposals that would require disclosure of pricing reference information in customer confirmations for transactions in fixed income securities.  

Specifically, the proposals would require bond dealers in retail-sized fixed income transactions to disclose in customer confirmations the price of certain same-day principal trades in the same security as well as the difference between this price and the price the customer received. 

FINRA and the MSRB are seeking input on the likely economic implications of the proposals and on alternative regulatory approaches, including a potential disclosure requirement that would target trades that could be considered riskless principal transactions. Comments should be submitted to FINRA and the MSRB no later than January 20, 2015. 

Click here for FINRA Regulatory Notice 14-52. Click here for MSRB Regulatory Notice 2014-20.

 

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