WASHINGTON - The Municipal Securities Rulemaking Board issued guidance on Friday warning broker-dealers of the muni rules that they need to comply with when selling or trading California IOUs.

The MSRB's notice followed guidance the Securities and Exchange Commission released late Thursday asserting that the IOUs - formally known as registered warrants - are municipal securities subject to federal securities laws and muni rules.

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.