WASHINGTON — Retail order periods are often gamed so that retail investors do not get many bonds and dealers or institutional investors sometimes “flip” bonds, purchasing them and then immediately reselling them to retail investors at higher prices, market participants told the Municipal Securities Rulemaking Board last week.

But the Securities Industry and Financial Markets Association contends these practices, when abusive, are violations of existing MSRB rules and said the board should enforce those rules rather than propose regulating dealer allocations of bonds.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.