,,ii  #aacth ,,congress  #b;d ,session  
,s4 #baad  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,march #ab1    
#bjad,mr4 ,warner 7for himself and ,mr4 
,coburn7 introduced the following bill2 
which was read twice and referred to the
 ,committee on ,banking1 ,housing1 and  
,urban ,affairs  ,a ,,bill  ,to amend   
the ,securities ,exchange ,act of #aicd 
with respect to disclosures to investors
 in municipal and corporate debt        
securities1 and for other purposes4  #a4
 ,short title ,this ,act may be cited as
 the ,bond ,transparency ,act of #bjad4 
#b4 ,markup disclosure in riskless      
principal transactions in municipal     
securities ,section #ae;,b of the       
,securities ,exchange ,act of #aicd 7#ae
 ,u4,s4,c4 #gho-#d7 is amended-- 7#a7 by
 redesignating subsection 7e7 as        
subsection 7f72 and  7#b7 by inserting  
after subsection 7d7 the following3  7e7
 ,markup disclosure in riskless         
principal transactions  7#a7 ,definition
 ,in this subsection1 the term riskless 

principal transaction means-- 7,a7 a    
transaction in which a broker1 dealer1  
or municipal securities dealer receives 
a customer order to buy or sell any     
municipal securities and1 after         
receiving the customer order1 buys the  
municipal securities from1 or sells the 
municipal securities to1 another person1
 while acting as principal for its own  
account1 to complete the customer order2
 and  7,b7 any other transaction the    
,commission identifies by rule as a     
riskless principal transaction4  7#b7   
,disclosure required ,a broker1 dealer1 
or municipal securities dealer that     
effects a riskless principal transaction
 shall disclose to the customer1 in     
writing1 at or before the time of       
completion of the transaction1 the      
amount of the difference between-- 7,a7 
the customer's purchase price and the   
broker's1 dealer's or municipal         
securities dealer's purchase price2 or  
7,b7 the customer's sale price and the  
broker's1 dealer's1 or municipal        

securities dealer's sale price4  4  #c4 
,markup disclosure in riskless principal
 transactions in corporate debt         
securities ,section #ae of the          
,securities ,exchange ,act of #aicd 7#ae
 ,u4,s4,c4 #gho7 is amended by adding at
 the end the following3  7p7 ,markup    
disclosure in riskless principal        
transactions in corporate debt          
securities  7#a7 ,definitions ,in this  
subsection-- 7,a7 the term specified    
debt security-- 7i7 means any security  
that-- 7,i7 evidences a liability of the
 issuer 7including any such security    
that is convertible into stock or       
similar security71 including bonds1     
debentures1 notes1 or any similar       
instruments1 and any fractional or      
participation interests in any of the   
foregoing2 and  7,,ii7 constitutes--    
7aa7 ,united ,states dollar-denominated 
securities issued by the ,united ,states
 or a foreign private issuer2 or  7bb7  
any other security the ,commission      
identifies by rule as a specified debt  

security for the purposes of this       
subsection2 and  7ii7 does not include a
 municipal security1 as defined in      
section #c7;a77#bi7 of this ,act2 and   
7,b7 the term riskless principal        
transaction means-- 7i7 a transaction in
 which a broker or dealer receives a    
customer order to buy or sell any       
specified debt securities and1 after    
receiving the customer order1 buys the  
specified debt securities from1 or sells
 the specified debt securities to1      
another person1 while acting as         
principal for its own account1 to       
complete the customer order2 and  7ii7  
any other transaction the ,commission   
identifies by rule as a riskless        
principal transaction4  7#b7 ,disclosure
 required ,a broker or dealer that      
effects a riskless principal transaction
 shall disclose to the customer1 in     
writing1 at or before the time of       
completion of the transaction1 the      
amount of the difference between-- 7,a7 
the customer's purchase price and the   

broker's or dealer's purchase price2 or 
7,b7 the customer's sale price and the  
broker's or dealer's sale price4  4