FINRA Approves Proposal Requiring Enhanced Price Disclosure to Retail Investors

The Board of Governors of FINRA approved a proposal that would require member firms to disclose the "mark-up" or "mark-down" on retail customer confirmations for a majority of debt securities and corporate transactions. Each confirmation also would have to include a reference to trade-price data in the same security from the FINRA Trade Reporting and Compliance Engine ("TRACE"). The proposal is designed to help retail customers understand and compare transaction costs in fixed-income securities.