WASHINGTON — A muni market research group is urging Congress to require the Municipal Securities Rulemaking Board to tag issuers that fail to comply with their secondary-market disclosure agreements and then force dealers to take the flagged muni securities into account when trading.

The plan was floated by Matt Posner, a director at Municipal Market Advisors, in written testimony he provided to the Senate Finance Committee earlier this week. It would require the MSRB or an independent entity to monitor and flag munis on the board’s EMMA website when issuers fail to comply with their continuing disclosure obligations under federal securities laws. Broker-dealers would be required to show when they trade a flagged muni.

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