Goldman pushes for delayed reporting of large credit portfolio trades

Core Viewpoint - Goldman Sachs is advocating for U.S. regulators to permit large banks to delay public reporting of significant corporate bond trades to better manage risk and avoid market disruption [1][2]. Regulatory Proposal - Current FINRA rules mandate that banks disclose secondary trades of investment-grade and high-yield bonds within 15 minutes, regardless of trade size [3]. - Goldman proposes that trades valued between $250 million and $500 million should be disclosed by the end of the trading day, while trades above $500 million should be reported by the end of the following day [4]. Impact on Market - The suggested changes would affect approximately 0.5% of all portfolio trades, as most corporate bonds are under $250 million [5]. - Goldman argues that awareness of large block trades can lead to information leakage, which negatively impacts pricing for end investors [6]. Market Structure Changes - The U.S. corporate bond market has evolved with electronic trading now accounting for over 50% of investment-grade volumes, and bond ETF volumes averaging $10.4 billion daily [7].