WASHINGTON - The Securities Industry and Financial Markets Association is concerned that an interpretive release the Municipal Securities Rulemaking Board filed with the Securities and Exchange Commission last month may prove unreasonably burdensome for dealers and make them less willing to enter into trades with retail customers.

In a six-page letter sent to the SEC, SIFMA said it is particularly worried about a portion of the board's interpretive letter that says its Rule G-17 on fair dealing requires a dealer to disclose, prior to a bond sale, all material information about the transaction known by the dealer, as well as material information about the security that is "reasonably accessible to the market." The MSRB letter said this guidance applies to any transaction, regardless of whether the dealer is acting as a so-called order-taker in an unsolicited trade or the transaction is a primary or secondary market trade.

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