WASHINGTON - Institutions dealing in government securities will be required to furnish more trading information to the government under legislation signed into law Friday by President Clinton.

The Government Securities Act Amendments of 1993, passed in reaction to the Salomon Brothers trading scandal, is intended to overhaul the regulation of the $4.5 trillion market for bonds issued by the Department of Treasury.

Under the law, all government securities brokers and dealers will be required to provide to the Securities and Exchange Commission, on request, transaction records needed to reconstruct trading activities.

The bill also calls for certain reforms in the primary auction market for government securities, including institution of electronic bidding and broader access to the auction.

Clear Signal to Wall Street

In addition, Treasury will be authorized to adopt rules requiring reporting by holders of large positions in government securities. The legislation makes it a violation of law to make false or misleading statements in connection with any bid for the purchase of government securities.

"Enactment of this legislation sends a clear signal to Wall Street that the excesses of the '80s will no longer be tolerated," said Rep. Edward J. Markey, D-Mass.

"Those who try to manipulate the securities markets or defraud and abuse the investing public are going to be held accountable," the legislator said.

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