Broker dealers

The agenda includes discussion of possible changes to MSRB Rule G-10, on investor and municipal advisory client education and protection.

In two municipal bond transactions, Aegis Capital Corp. sold to its customers at prices that were 40% higher than the market rate.

Among over 1,200 dealers registered with the MSRB, 21 firms are bank dealers who would be impacted by the change.

The charges against Ricky Mantei stem from allegations of prearranged trading in violation of his firm's established procedures.

Much of the material being retired dates back more than 35 years.

Dealers say increased focus on systemic pennying has decreased its activity, while others aren't so sure.

The dealer group is concerned the SEC may provide another exemption for municipal advisors to work on private placement deals.

The reduction would be the largest the MSRB has done, substantially more than a previous one which caused a loss of $5.2 million.

Since a temporary exemption allowing muni advisors to facilitate certain private placement deals expired, a federal court cannot strike it down, the SEC argued.

This will be MSRB’s first board meeting of the calendar year.

The group specifically revised six of its model disclosure documents for risk disclosure including floating rate notes, fixed-rate bonds, interest rate swaps, forward delivery bonds, tender offer bonds and variable rate demand obligations.

Sources say pricing of bonds will be a prevalent issue in 2021 following comments made by bipartisan SEC commissioners.

The program has drawn comparisons to the Securities and Exchange Commission's MCDC.

The firm violated municipal advertising and fair dealing rules, the SEC found.

SEC Chair Clayton told Rep. French Hill, R-Ark., late last week that he expects the program to sunset at year's end as scheduled.

Multiple news articles, which the SEC did not include, contradict the commission's major reasoning for why a temporary exemption for municipal advisors was needed, SIFMA said.

FINRA announced the settlement this week, in which RBC agreed to a censure while neither admitting nor denying FINRA’s findings that it violated Municipal Securities Rulemaking Board Rule G-27 on supervision. RBC was not fined.

The SEC said the court should oppose SIFMA's motion to include news articles in the proceedings, saying the group relied on only one rationale.

The number of issuers using a temporary exemption jumped to 101 in October from 35 the previous month.

During an industry briefing Tuesday, SIFMA's Kenneth Bentsen, Jr., said no matter who leads the SEC next, SIFMA will argue for an end to a temporary exemptive order.