Japan to Force Full Disclosure of Corporate Bond Trades

Japan’s securities dealers will soon be required to reveal more details about their corporate bond transactions, a move aimed at increasing transparency in a market traditionally known for its opacity. Under new rules from the Japan Securities Dealers Association, firms must publicly report the price and volume of each trade, including both government and corporate bonds, starting next year. Previously, dealers could keep most trading data private, leaving investors in the dark about actual market conditions. The change is expected to help smaller investors and foreign funds make better-informed decisions, though some dealers worry it could reduce their profit margins. The association says the policy will bring Japan closer to global standards set by markets like the United States and Europe.