WASHINGTON - The Municipal Securities Rulemaking Board will not amend its Rule G-37 to restrict dealer contributions to bond ballot campaign initiatives because there is not enough evidence to show firms are being awarded bond business after helping to fund the initiatives. The decision left some market participants scratching their heads.

"We do not have any adequate evidence to suggest that bond ballot campaign contributions are having a deleterious effect on the municipal market," MSRB chairman Ron Stack told reporters yesterday in a conference call outlining the outcome of the board's meeting last week in New York City. The board's staff has been directed to continue to study the issue, said Stack, managing director and head of public finance at Barclays Capital.

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