In FINRA’s November 2014 Regulatory Notice 14-52, FINRA proposed a new rule that would require broker-dealers to disclose additional information on customer confirmations for transactions in fixed income securities.Under the proposal, for same-day, retail-size principal transactions, broker-dealers would need to disclose on the customer confirmation (a) the price to the customer, (b) the price to the broker of a transaction in the same security and (c) the difference between those two prices.9

The proposal reflects the recent push by U.S. regulators to enhance pricing transparency in the U.S. debt markets. For example, in 2012, the SEC recommended that the MSRB consider requiring disclosure of pricing information to retail investors, and senior SEC officials have focused on increasing the transparency of these markets.

The proposed rule relates to “corporate debt securities,” which would include many types of structured notes, including Rule 144A securities. The proposal excludes “Money Market Instruments,” which are debt securities that have a maturity of one year or less.

FINRA’s regulatory notice includes a variety of sample calculations and determinations, and requests comments from the industry and other interested persons as to the proposed rules and their impact. The comment period will expire on January 20, 2015.