Client Alert
The Municipal Securities Rulemaking Board is seeking comment on proposed guidance on establishing the “prevailing market price” and calculating mark-ups and mark-downs for principal transactions in municipal securities. The MSRB believes additional guidance on these subjects may promote consistent compliance by brokers, dealers and municipal securities dealers with their existing fair-pricing obligations under MSRB and Financial Industry Regulatory Authority, Inc. rules. The MSRB’s proposed guidance is generally consistent with the supplementary material to FINRA Rule 2121 regarding the establishment of prevailing market price for fixed income securities other than municipal securities.
