Bond Market Gets Reprieve From SEC Rule That Spooked Traders
- Regulation delayed that could have affected price quotes
- Regulator says bond dealers must now comply by Jan. 3
This article is for subscribers only.
The bond market got a three-month reprieve from a U.S. rule that traders said could cause big disruptions by preventing dealers from providing certain price quotes.
The Securities and Exchange Commission announced the relief in a letter posted Friday on its website. The SEC regulation, which takes effect next week, is intended to rid over-the-counter stock markets of companies that are delinquent in disclosing financial information. It does so by barring brokers from publishing quotations for such companies, which are often targets of pump-and-dump schemes and other misconduct.