Dealers: Proposed MSRB Minimum Denomination Rule Would Hurt Liquidity
Dealer groups are concerned that a proposed Municipal Securities Rulemaking Board standalone minimum denomination rule would hurt liquidity and adversely affect participants in the market.  more »
"The result of [the rule's] complexity is that customers will be left with positions in municipal securities that they will not be able to trade or will only be able to trade at inferior prices," Mike Nicholas, chief executive officer for Bond Dealers of America, said.
Underwriters’ counsel should be more proactive in keeping up to date with regulators’ concerns and then communicating those to their underwriter clients, a dealer official said here. more »
While the Securities and Exchange Commission remains silent on whether there will be more settlements under its continuing disclosure enforcement initiative, an SEC official said any party that voluntarily submitted potential violations will be told whether the commission plans to take action against them. more »
The Municipal Securities Rulemaking Board plans to meet here Oct. 26-27 to discuss making certain pre-trade pricing data available on its EMMA website for retail investors as well as updating syndicate offering practices. more »
R. Seelaus & Co., Carty & Co., and Emmet & Co. have agreed to pay a total of $83,000 to settle separate charges by the Financial Industry Regulatory Authority related to unfair markups, trading below the minimum denomination, and trade reporting failures involving municipal securities. more »
The Municipal Securities Rulemaking Board must now have at least one municipal advisor representative board member present to constitute a quorum under a rule change it filed with the Securities and Exchange Commission on Friday. more »
The Securities and Exchange Commission enforcement division’s heightened attention on the municipal market and application of new legal techniques to that enforcement are “here to stay,” according to the commission’s top cop, Andrew Ceresney. more »
Securities and Exchange Commission Chair Mary Jo White should be demoted as head of the agency because of her lack of support for a rule that would require companies to publicly disclose their political spending, Sen. Elizabeth Warren, D-Mass., said Friday. more »
The Securities and Exchange Commission voted unanimously on Thursday to finalize new open-end fund liquidity requirements that market participants said would hurt the industry by damaging the funds' appetites for munis. more »
The Municipal Securities Rulemaking Board announced on Wednesday that it is seeking input from market participants on where to focus its long-term strategic plan and specifically how it can improve its EMMA system. more »
Municipal advisors face growing concern that some activities they could pursue to help clients make private placements might land them in hot water with the Securities and Exchange Commission. more »
Larry Kidwell, president of Brentwood, Tenn.- based Kidwell and Company, has been elected as the new president of the National Association of Municipal Advisors. more »
Securities and Exchange Commission examinations of municipal advisors over the past two years found fiduciary duty and fair dealing violations, said SEC officials who cautioned the number of MA exams will increase in 2017. more »
Dealer groups are warning that a Municipal Securities Rulemaking Board proposal to require dealers to disclose their markups and markdowns in certain transactions would be overly complex and hurt liquidity. more »

James Colby, Senior Municipal Strategist and author of the Muni Nation blog at Van Eck, stopped by The Bond Buyer recently to chat with Senior Markets Reporter Chip Barnett about municipal market performance. He also discussed the stability of munis versus other asset classes, muni bond fund inflows versus money market fund outflows, muni exchange traded funds, and what to expect in the last quarter the year.

The SEC's MCDC initiative is causing many municipal issuers and underwriters to change the way they do things.

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