Washington

Rep. Jeb Hensarling, a Texas Republican with ties to Lone Star state muni-bond dealers and other financial firms, is most likely to become the next chairman of the House Financial Services Committee in January, according to lobbyists and market sources.

The Securities and Exchange Commission's recently issued report on the municipal securities market should serve as a "starting point for comprehensive dialogue" with Congress and market participants on improving fairness and efficiency of the market," SEC Commissioner Daniel M. Gallagher said last week.

The SEC approved rule changes that will restrict underwriters from using the phrase "not reoffered," or "NRO," in written communications.

Municipal market participants are irked that the Securities and Exchange Commission has further delayed temporary registration rules for municipal advisors, saying the lack of a final MA definition has allowed market abuses to continue unchecked for years.

WASHINGTON — The Securities and Exchange Commission has extended for one year its temporary registration rules for municipal advisors, the second extension since the SEC issued the temporary rule late 2010.

The National Federation of Municipal Analysts has updated its disclosure best-practices paper for issuers of hospital debt in response to market changes spurred by the financial crisis.

Gary Goldsholle, vice president and association general counsel at the Financial Industry Regulatory Authority, has been named general counsel at the Municipal Securities Rulemaking Board and will join the board in late October.

The House of Representatives passed a bill late Wednesday that would narrow the definition of municipal advisor and exempt a number of market participants from being subject to MA registration and other rules.

Public interest and other groups scrambled to send letters to lawmakers opposing a municipal advisor bill they fear will roll back critical components of the Dodd-Frank Act.

The Financial Industry Regulatory Authority has ordered five firms to pay $137,500 in fines for violations of trade reporting and other municipal securities rules.