The MSRB published investor education materials on mark-up and mark-down disclosures that will be required in certain municipal securities trade confirmations. The new materials - which follow recently updated FAQs - provide additional guidance for complying with new rules scheduled to take effect May 14, 2018.
The new materials address amendments to (i) MSRB Rule G-15, which will require dealers to disclose more information on retail customer confirmations for principal transactions, and (ii) MSRB Rule G-30, which provides guidance on the determination of the prevailing market price for the purpose of determining mark-ups and mark-downs. The rule amendments are intended to improve cost transparency for municipal security transactions.
The resources are available at the MSRB's free online Education Center.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
