After U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler signaled he may overhaul bond market regulations, industry experts zeroed in on just how opaque trading can be.

Gensler, who testified Tuesday before the Senate Banking Committee, said in prepared remarks released beforehand that he wants to "bring greater efficiency and transparency" to the trading of corporate bonds, municipal bonds, and mortgage-backed securities. He offered little detail on what new rules might look like.

Market watchers have suggestions, a year after a liquidity breakdown early in the pandemic forced the Federal Reserve to backstop the bond market. A big source of angst: Especially when compared with other key financial assets like stocks, it can take a lot more effort to figure out the price of a bond.

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