The MSRB requested feedback on draft interpretive guidance regarding the application of MSRB rules, and previous interpretive guidance for specific prearranged trading in connection with primary offerings of municipal securities.
According to the MSRB, the draft interpretive guidance is intended to:
- remind broker-dealers of existing requirements under MSRB Rule G-11 and Rule G-17; and
- demonstrate the ways in which MSBR rules apply to broker-dealers participating in certain prearranged trading related to primary offerings.
The MSRB stated that the interpretive guidance is not intended to prohibit "non-syndicate/selling group dealers from submitting orders for their own accounts or ordinary secondary market trading practices of dealers and investors." According to the MSRB, these improper trading practices cause customer orders to lose priority of execution and may also distort pricing.
Comments must be submitted before March 5, 2019.
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