The Securities and Exchange Commission (SEC) has approved a rule change by the Financial Industry Regulatory Authority (FINRA) to create a New Issue Reference Data Service for corporate bonds. This service will require underwriters to report specific data on new corporate bond issues to FINRA, which will then make this information publicly available. The goal is to reduce information asymmetry and improve market efficiency by ensuring all market participants have timely access to essential bond reference data. The SEC found that this change is consistent with the requirements of the Securities Exchange Act of 1934 and will enhance transparency and competition in the corporate bond market without imposing unnecessary burdens on competition.
Simple Explanation
The SEC has given the green light for a new rule where people who help sell new corporate bonds must share important details with a group that will then make this info available to everyone, so it's fair and everyone knows the same things about new bonds. This is like making sure everyone playing a game knows the rules at the same time, which helps things stay fair and fun.