It is being reported that the U.S. Securities and Exchange Commission (the SEC) recently approved regulations that will prevent banks from keeping secret the yields on certain state and local government bonds during the first trading day.
According to these reports, the SEC approved rules that will require underwriters to disclose yields on bonds that aren’t immediately offered for resale to investors. The change will require more rapid dissemination of information that previously may not have been available to the public until the end of the trading day.
The rules are aimed at injecting more transparency into the $3.7 trillion municipal bond market, which is used by states, cities and school districts to finance public projects. Clearly, additional transparency is a benefit to retail investors, many of whom are retirees.
The foregoing information has been provided by The White Law Group, a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Boca Raton, Florida. For more information on The White Law Group, visit https://www.whitesecuritieslaw.com.