Jack Casey

The Municipal Securities Rulemaking Board plans later this year to propose changes to Rules G-37, on political contributions, and G-20, on gifts and gratuities, to extend these dealer rules to municipal advisors, the executive director said on Tuesday.

Proposed rule changes by the Federal Reserve are so restrictive that they would either substantially reduce or exclude municipal securities from being considered high-quality liquid assets in liquidity coverage ratios banks have to meet and, as a result, would hurt the municipal market, dealer groups and issuers are warning.

The Senate Appropriations Committee approved a bill Thursday that would provide $1.5 billion of funding for the Securities and Exchange Commission in fiscal year 2016, the same amount as the fiscal 2015 enacted level and $222 million less than the commission requested earlier this year.

The Municipal Securities Rulemaking Board revised its three online information facilities to add references to the self-regulator's core operational hours and highlight the 24/7 availability of a number of the systems' functions.

The probability of a Puerto Rico default that would cause “substantial” losses “is approaching 100%,” Moody’s Investors Service said.

The Municipal Securities Rulemaking Board, at its meeting next week, plans to discuss draft guidance on its best execution rule, its proposal to require dealers to provide pricing information to customers, and the reaction to its bid to ease standards for the public investor representative on its board.

The Government Finance Officers Association took issue with the Municipal Securities Rulemaking Board’s proposed easing of standards for one public board position, saying the changes could affect the balance of power and lead to candidates who do not represent the best interests of investors.

The Senate Finance Committee is pressing Treasury Secretary Jack Lew for positions on Puerto Rico, including whether it supports giving the troubled territory the ability to allow its public entities to file for bankruptcy protection under Chapter 9.

The Municipal Securities Rulemaking Board is proposing to create a trade data product that would allow higher education researchers to see what dealers are doing while keeping the dealer identities anonymous.

Sens. Chuck Schumer, D-N.Y., and Richard Blumenthal, D-Conn., unveiled a bill on Wednesday to allow Puerto Rican public entities to declare Chapter 9 bankruptcy.

The Municipal Securities Rulemaking Board’s proposal to ease the independence standard for its public investor slot is “deeply flawed” and “would undermine the very purpose” of Dodd-Frank Act provisions, according to the Securities and Exchange Commission’s Investor Advocate.

The Financial Industry Regulatory Authority is expected to release an investor alert Monday to educate bondholders on liquidity issues that can arise during times of market stress.

Two senators have introduced a bipartisan bill that would give the Securities and Exchange Commission the ability to levy higher civil monetary penalties against firms and individuals for securities law violations.

The House Judiciary Committee is unlikely to pass legislation that would give Puerto Rican public municipalities and utilities the ability to file for bankruptcy under Chapter 9, committee chair Bob Goodlatte, R-Va., said in a Wednesday statement.

Pressure is mounting for Congress to make Puerto Rico's public entities eligible for Chapter 9 bankruptcy protection in the wake of an appeals court decision that found the territory's restructuring law illegal, and calls from top presidential candidates for congressional action.

Amid talks of Puerto Rico’s looming debt crisis, two senators plan to introduce companion legislation to a bill that would allow Puerto Rico to grant Chapter 9 bankruptcy powers to troubled public entities on the economically distressed island.

The Municipal Securities Rulemaking Board is giving 529 college savings plan underwriters a 60-day extension on the first date data submissions are due under a recently adopted rule.

The White House reiterated that the federal government won't offer bailout support to Puerto Rico after Gov. Alejandro García Padilla said the island's debt is not payable and that a debt restructuring is necessary,

As the Municipal Securities Rulemaking Board continues to gather information on bond ballot contributions and weigh its regulations on the topic, concerns about possible pay-to-play issues from the contributions are already finding their way into the public eye.

Total net tax-supported debt fell for the first time in 28 years in 2014, a Moody’s report found.