If the SEC proceeds with its secondary market disclosure rule as proposed, the municipal market will dissolve into a "multi-tiered market" in which many bonds are illiquid, warned top industry officials yesterday.

"If the Securities and Exchange Commission's rule becomes effective, I feel the market at least in the short term, and personally I believe in the long term, will suffer a tremendous decrease in liquidity," said Terry L. Atkinson, vice chairman of the Public Securities Association's municipal securities division.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.