April 1 The U.S. Securities and Exchange
Commission has approved rules that increase disclosure
requirements for dealers in the municipal bond market who
contribute to ballot measure campaigns for taxpayer-financed
projects, the Municipal Securities Rulemaking Board said on
The $3.7 trillion market already has strict "pay-to-play"
rules governing donations by dealers to political campaigns for
public office, as well as some disclosure requirements for
contributions to ballot campaigns.
Under the new rules, which take effect on July 1, dealers
will have to report contributions of goods or services to bond
campaigns and when they were made. Dealers will also have to
disclose if they were chosen to underwrite the bonds that were
the subject of the campaign.
"Requiring more disclosure about dealers' bond ballot
contributions will shine light on potential connections between
dealers' financial contributions and the awarding of bond
business," said MSRB Executive Director Lynnette Kelly in a
The MSRB, a self-regulatory organization, writes the rules
for the municipal bond market that the SEC enforces.