This thing called transparency is spreading in the corporate-bond market, and it's hurting traders' bottom lines.
Credit traders are increasingly being forced to publish the prices at which they bought and sold securities. They're reaping smaller profits as a result, so it's no wonder they're negative on new proposals requiring them to report details on an even broader swath of debt trades.
In the U.S., the Financial Industry Regulatory Authority (FINRA) will start disseminating prices on privately sold corporate debt at the end of this month. While the U.S. has required some public disclosure of corporate-bond prices since 2002, the European Parliament just approved a similar set of rules in April, which the European Securities & Markets Authority now has the task of defining.
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