Bond Traders Find New Way to Get Early View of US Credit Markets

New rules in Europe are bringing US corporate bonds closer to real-time 24-hour trading — and helping American market players get more realistic prices earlier in the day.

That’s because more trades in the UK, including US dollar bond trades that take place in London, now must be reported as soon as possible, and no later than 15 minutes after execution. A similar shift is expected in the European Union in March.

The likely result: More realistic quotes on a bond’s current price and smaller differences between the bid and ask levels that could cut trading costs for some ...