MSRB, SEC And FINRA Discuss Municipal Securities Oversight And Cross-Market Initiatives

The MSRB Board of Directors met with SEC and FINRA regulators to discuss oversight of the municipal securities market and coordination on cross-market initiatives. The MSRB Board met with SEC Chair Mary Jo White, Office of Municipal Securities Director Jessica Kane and Deputy Director Rebecca Olsen. The MSRB met separately with FINRA President and CEO Robert Cook and Director of Fixed Income Regulation Cynthia Friedlander.

At these meetings, the MSRB Board of Directors:

• discussed public comments received on the MSRB mark-up/mark-down proposal to require municipal securities dealers to provide retail investors information about dealer compensation for certain transactions and "agreed to make several minor amendments";
• directed MSRB staff to conduct further research on the potential value of certain pre-trade data as it continues to assess how it might enhance pre-trade transparency for retail investors;
• directed MSRB staff to conduct a holistic review of its rules regarding primary offering practices with a view to enhancing existing protections under MSRB rules, including further consideration of a previously announced plan to amend MSRB Rule G-34, on the assignment of CUSIP numbers in primary offerings;
• agreed to publish a request for comment on proposed updates to MSRB Rule G-26, on customer account transfers;
• agreed to publish interpretive guidance on the application of MSRB rules to municipal bond transactions by investment advisers having full discretion to act for their clients' accounts; and
• held a preliminary discussion of comments received on a proposal to clarify regulatory provisions that prohibit dealers from buying or selling bonds below the minimum denomination stated in the bond offering document.

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