The BDA supports the MSRB’s focus on market transparency and we believe this is a significant step in evaluating improvements to overall municipal market transparency. However, as the MSRB suggested it would consider raising the threshold in the future “with a view towards bringing full transparency of exact par values to the municipal market in…
Author: Bond Dealers of America
BDA Defends Muni Advisor Legislation
BDA’s commentary focuses on H.R. 2827, sponsored by Rep. Bob Dold (R-IL) and cosponsored by Rep. Gwen Moore (D-WI) and others. This legislation, which the BDA strongly supports, would clarify the definition of municipal advisor, clearing the way for currently unregulated municipal financial advisors to become regulated by the SEC. The BDA would therefore encourage…
MSRB Receives Approval From SEC to Limit the Use of "Not Reoffered" or "NRO" Designations
The requirement that the NRO or not reoffered designation not be used without also including the applicable price or yield information is an amendment to MSRB Rule G-34 on new issues and market information requirements. This new requirement, which becomes effective November 1, 2012, will apply to any written communication sent at or after the…
SEC Extends Expiration Date for Registration of Municipal Advisors
BDA is hopeful that the SEC will take the extension of time to evaluate the good ideas for clarifying its proposed definition of municipal advisor, as presented by legislation that passed the U.S. House of Representatives this week, H.R. 2827 by Rep. Dold (R-Il), Rep. Moore (D-WI) and others. The bill provides needed clarity as to the distinct…
BDA Submits Comment Letter to the MSRB Re: Strengthening Account Opening Procedures for Online Transactions
The BDA submitted a comment letter to the MSRB in response to a concept proposal relating to potential additional protections for individual investors effecting transactions through electronic brokerages when recommending municipal securities transactions to individual investors. In it’s letter, the BDA said that it supports the MSRB’s efforts to remind dealers that operate as electronic…
House Passes Bill to Define Municipal Advisor
BDA supports H.R. 2827 because it paves the way for the SEC and the MSRB to regulate currently unregulated municipal advisors, while providing needed clarification that underwriters are not captured by the definition. Being defined as a municipal advisor entails a fiduciary duty that does not fit the role of the underwriter, who owes a…
BDA in the News: Cuts Could Push BABs Off Fiscal Cliff
Today’s Bond Buyer featured an article warning about “[t]he threat that federal subsidy payments for Build America Bonds could be slashed under the sequestration process after administration officials assured issuers those payments were safe could permanently sour the muni market on BABs and other direct-pay bonds…” In an alert to members over the weekend, the…
BDA In The News: Bond sellers fret over Romney tax plans
As a result, supporters are ramping up efforts to educate lawmakers about the importance of tax-free bonds by stressing the positive impact that they have on towns and cities nationwide. BDA is quoted as saying, “If we do our part to really educate Congress about the importance of municipal bonds, we think they’ll look elsewhere.…
BDA In The News: Muni Advisor Bill Amended, Ready for House Committee Vote
According to an article in the Bond Buyer, the staffs of Rep. Gwen Moore, D-Wis., and Dold have spent the last several weeks meeting with market participants and hammering out a municipal advisor definition that will likely receive bipartisan support. Dold introduced the bill to address concerns that the Securities and Exchange Commission’s initial MA…
The BDA Joins Coalition Letter Calling for an Extension of the $30 million Debt Limit for Bank Qualified Bonds
Leading up to a Senate Finance Committee markup of tax legislation, the BDA has joined with issuers and other groups with a letter to the Chairman and Ranking Member of the Senate Finance Committee supporting an extension of the $30 million debt limit for Bank Qualified Bonds in any tax legislation this year. To view this letter,…