MSRB

In FY 2025, the Securities and Exchange Commission's Examination Division will be closely monitoring for compliance with MSRB Rule G-42 on the core standards of municipal advisors, in addition to enforcing the T+1 settlement cycle.

The Municipal Securities Rulemaking Board will hold its first meeting of fiscal 2025 on October 23 and 24, under its new chair, Warren "Bo" Daniels.

Data from the Municipal Securities Rulemaking Board indicates that trade volume may stay high after a consistent third quarter.

The board kicks off the new fiscal year with a new budget, a 2.9% increase from the prior year.

Daniels assumes the role at a pivotal time for the regulator, which in the next year will see the launch of a new EMMA system, and implement its first new budget since 2023.

The Louisiana native looks back on five years with the board, including two years as chair and one as vice chair.

The Commission approved changes to MSRB Rule G-14 on customer transaction reporting, paving the way for dealers and stakeholders to work with the MSRB to establish a reasonable path forward.

The Financial Industry Regulatory Authority found that the firm had not included the non-transaction-based compensation indicator on 23,000 municipal securities transactions.

The commission charged the municipal advisors $1.3 million in penalties due to recordkeeping failures stemming from use of unmonitored communications, such as text messages, to conduct business.

A report by the Securities Industry and Financial Markets Association shows that the move to a T+1 settlement cycle has struck the right balance between increasing efficiencies and mitigating risk.

The data comes from a new MSRB study, on a topic related to a 2023 report.

Dealers are welcoming the widening of the exceptions to manual trades and de minimis trading activity but are still asking regulators to prove why such a move is necessary.

The Financial Industry Regulatory Authority adds Morgan Stanley to the growing list of firms charged with mark-up and mark-down failures on municipal securities transactions.

The amendments to MSRB rule A-12 on registration would cause bank dealers to disclose associated persons, the same requirements that currently apply to non-bank dealers.

The three new members will serve four-year terms beginning with the board's new fiscal year in October.

Regulators indicated they may prefer the use of Financial Instrument Global Identifiers for securities.

Riedl First Securities Company of Kansas has been fined $15,000 by FINRA for charging unfair prices, violating MSRB Rule G-30 on fair pricing and MSRB Rule G-27 on supervision.

The Jeffrey Matthews Financial Group has been charged $110,000 for charging unfair prices on 86 municipal bond transactions a week after being dinged for Reg BI violations.

During its final quarterly meeting for the FY 2024 fiscal year, the Municipal Securities Rulemaking Board elected a new chair and vice chair, and approved a $48.8 million budget for the upcoming year.

The board's next quarterly meeting, scheduled for July 24-25, will include a review of market regulations, structure, and transparency issues .