ATLANTA -- The Securities and Exchange Commission's new disclosure requirements would only cover trades that are initiated by brokers. but firms should be "very cautious" about what they view as an unsolicited trade, an SEC official warned dealers.

"Would the secondary market disclosure [rule] apply to unsolicited transactions? The answer is no. [It] only applies to direct recommendations," Belinda Blaine, deputy chief counsel of market regulation, told market participants at a Public Securities Association seminar held here last week on disclosure, political contributions, and other burning regulatory issues that effect municipal bonds.

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