LONDON (ShareCast) - The Swedish Financial Supervisory Authority is bringing the hammer down on traders who break rules that require them to report company bond prices.
The financial watchdog will step up pressure on corporate debt traders to abide by existing rules in a bid to improve transparency in a growing market, Bloomberg reported Wednesday.
Traders will need to file trade reports, including volumes and closing prices, no later than 9:00 the following day.
The move will lower costs for companies issuing debt, said Daniel Sachs, chief executive officer of Proventus.
The krona strengthened 0.29% at 6.4544 to the dollar at 11:00 Wednesday.
The outstanding bond value of non-financial Swedish companies grew by three billion kronor to 191bn from 2010 to 2011, according to Riksbank.
The central bank said Sweden's corporate bond market is expected to grow as companies search for alternatives to bank loans following the financial crisis.
The country's biggest companies including TeliaSonera, Volvo and Atlas Copco (NasdaqGS: ATLC - news) dominate issuance in the country while smaller firms without a credit rating may have a harder time attracting investors, Riksbank said.
Sweden's banks have withheld credit following harsher capital requirements in the country.
If more companies list bonds electronically, this should improve transparency, Sachs said.