WASHINGTON — As the full Senate began to debate financial regulatory reform legislation Thursday, dealers pushed back against several provisions they said could shut down the swaps market for states and localities.

But Senate Democrats and regulators contended that the provisions would provide much-needed protections for public entities. In addition, it appeared unlikely that lawmakers would remove the provision of greatest concern to the dealer community — one that would hold dealers to a “fiduciary” duty when they pitch, advise or enter into a swap with a municipal entity, endowment or pension fund.

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.