The Municipal Securities Rulemaking Board is seeking public comment on draft interpretive guidance it released yesterday that outlines steps dealers must take to ensure the prices they charge customers to buy and sell municipal securities are fair and reasonable.

The lengthy guidance would provide additional structure to the manner in which dealers must determine that the prices they offer their customers are “reasonably related” to the market value of the securities and that the markups or markdowns on a security do not exceed a fair and reasonable amount.

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.