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 this week to consider several regulatory proposals, including one on dealer markups.
BARNETT: The MSRB's Board is meeting in Washington this week to consider a number of regulatory proposals, including one involving dealer markups. The MSRB, which writes the rules for the municipal bond market that are enforced by the SEC and FINRA, has proposed changes to Rule G-30 on prices and commissions to create a process for dealers to determine a prevailing market price that can be then used to calculate markups.
But dealers and issuers have complained about these changes, saying they are incompatible with the workings of the municipal bond marketplace and would burden the market rather than improve it. Separately, the MSRB must decide on what to do about its growing cash fund reserves. The money, which comes from the fees that muni market participants pay to the agency, currently exceeds the MSRB's target rate. The board can address the surplus in a number of ways, including giving out a rebate, but may wait until its fall meeting to make a final decision. Stay tuned. I'm Chip Barnett, and this has been your Muni minute.