In the latest installment of Muni Minute The Bond Buyer's 60-second video series that examines a top municipal market story that will impact the coming week we take a look at the Municipal Securities Rulemaking Board which is meeting later this week to consider several regulatory proposals, including a very contentious one.
VOICE OVER: The MSRB is meeting in Washington later this week to consider several regulatory proposals, including a very contentious one involving markups. The MSRB, which writes muni market rules that are enforced by FINRA and the SEC, has proposed changes to its Rule G-30 on prices and commissions to create a process for how dealers should determine markups. Dealers and issuers have criticized the change saying it would add undue burden for questionable benefit. The SEC Investor Advocate, however, supports the proposal and has urged it to be tightened even further.
The MSRB will also consider a proposal to close out muni securities transactions within 30 days. This would change part of Rule G-12 on uniform practices, and according to the board, lessen the effect of interdealer transaction failures on the market. The MSRB will discuss continuing education requirements for muni advisors mandated under Dodd-Frank and will also look at upgrading its EMMA website to improve market transparency for investors.
I'm Chip Barnett. This has been your Muni Minute.