| June 1
June 1 The board that writes the rules for the
$3.7 trillion municipal bond market is trying to give all
investors equal access to trade information.
The Municipal Securities Rulemaking Board on Friday said it
was accepting comments through July 2 on changes in posting the
exact par amounts in trades with par value equal to more than $1
million. The change would eliminate a five-day window when those
large trades are posted simply as "1MM+" on the MSRB's web site,
"The MSRB believes disseminating the exact trade size of all
transactions will help achieve our goal of ensuring the fairest
and most accurate pricing of municipal securities transactions
by providing all market participants with equal access to
transaction information," said MSRB Executive Director Lynnette
Kelly in a statement.
In January, the federal watchdog agency, the Government
Accountability Office, said that institutional investors who
favor larger transactions trade at more favorable prices than
individual investors and are generally better equipped to make
independent assessments of a security's value.
That report inspired the board, a self-regulatory
organization made up of issuers, advisers and banks, that writes
the rules the Securities and Exchange Commission enforces, to
consider scratching the delay, which was intended to protect the
dealer and the institutional investors involved.
But last month, the board determined that "market efficiency
and investor protection would be enhanced by making this
information available immediately," according to a statement.