text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Bond Transparency Act of 2014''.
  
  SEC. 2. MARKUP DISCLOSURE IN RISKLESS PRINCIPAL TRANSACTIONS IN 
                MUNICIPAL SECURITIES.
  
      Section 15B of the Securities Exchange Act of 1934 (15 U.S.C. 78o-
  4) is amended--
              (1) by redesignating subsection (e) as subsection (f); and
              (2) by inserting after subsection (d) the following:
      ``(e) Markup Disclosure in Riskless Principal Transactions.--
              ``(1) Definition.--In this subsection, the term `riskless 
          principal transaction' means--
                      ``(A) a transaction in which a broker, dealer, or 
                  municipal securities dealer receives a customer order 
                  to buy or sell any municipal securities and, after 
                  receiving the customer order, buys the municipal 
                  securities from, or sells the municipal securities to, 
                  another person, while acting as principal for its own 
                  account, to complete the customer order; and
                      ``(B) any other transaction the Commission 
                  identifies by rule as a riskless principal transaction.
              ``(2) Disclosure required.--A broker, dealer, or municipal 
          securities dealer that effects a riskless principal transaction 
          shall disclose to the customer, in writing, at or before the 
          time of completion of the transaction, the amount of the 
          difference between--
                      ``(A) the customer's purchase price and the 
                  broker's, dealer's or municipal securities dealer's 
                  purchase price; or
                      ``(B) the customer's sale price and the broker's, 
                  dealer's, or municipal securities dealer's sale 
                  price.''.
  
  SEC. 3. MARKUP DISCLOSURE IN RISKLESS PRINCIPAL TRANSACTIONS IN 
                CORPORATE DEBT SECURITIES.
  
      Section 15 of the Securities Exchange Act of 1934 (15 U.S.C. 78o) 
  is amended by adding at the end the following:
      ``(p) Markup Disclosure in Riskless Principal Transactions in 
  Corporate Debt Securities.--
              ``(1) Definitions.--In this subsection--
                      ``(A) the term `specified debt security'--
                              ``(i) means any security that--
                                      ``(I) evidences a liability of the 
                                  issuer (including any such security 
                                  that is convertible into stock or 
                                  similar security), including bonds, 
                                  debentures, notes, or any similar 
                                  instruments, and any fractional or 
                                  participation interests in any of the 
                                  foregoing; and
                                      ``(II) constitutes--
                                              ``(aa) United States 
                                          dollar-denominated securities 
                                          issued by the United States or 
                                          a foreign private issuer; or
                                              ``(bb) any other security 
                                          the Commission identifies by 
                                          rule as a specified debt 
                                          security for the purposes of 
                                          this subsection; and
                              ``(ii) does not include a municipal 
                          security, as defined in section 3(a)(29) of 
                          this Act; and
                      ``(B) the term `riskless principal transaction' 
                  means--
                              ``(i) a transaction in which a broker or 
                          dealer receives a customer order to buy or sell 
                          any specified debt securities and, after 
                          receiving the customer order, buys the 
                          specified debt securities from, or sells the 
                          specified debt securities to, another person, 
                          while acting as principal for its own account, 
                          to complete the customer order; and
                              ``(ii) any other transaction the Commission 
                          identifies by rule as a riskless principal 
                          transaction.
              ``(2) Disclosure required.--A broker or dealer that effects 
          a riskless principal transaction shall disclose to the 
          customer, in writing, at or before the time of completion of 
          the transaction, the amount of the difference between--
                      ``(A) the customer's purchase price and the 
                  broker's or dealer's purchase price; or
                      ``(B) the customer's sale price and the broker's or 
                  dealer's sale price.''.
target: Bond Transparency Act of 2014 - Amends the Securities Exchange Act of 1934 to define a &quot;riskless principal transaction&quot; as any transaction the Securities and Exchange Commission (SEC) identifies as one, but primarily one in which a broker, dealer, or municipal securities dealer acts on a customer order to buy or sell either municipal securities or corporate debt securities while also acting as principal for its own account in order to complete the transaction. Requires a broker or dealer, at or before completion of the transaction, to make a markup disclosure in writing to the customer of the difference between either: (1) the customer's purchase price and the broker or dealer's purchase price; or (2) the customer's sale price and the broker or dealer's sale price. Subjects riskless principal transactions in corporate debt securities to the same markup disclosure requirements as those for riskless principal transactions in municipal securities.                          
feat_title: Bond Transparency Act of 2014