SEC Approves MSRB-Proposed Rule Change Regarding Prices and Commissions (Fed. Reg.)

The SEC published in the Federal Register its order approving an MSRB-proposed rule change regarding revisions to MSRB Rule G-30 ("Prices and Commissions") and the deletion of MSRB Rule G-18 ("Execution of Transactions"). The rule amendments are intended to codify and streamline the existing fair-pricing obligations of brokers, dealers and municipal securities dealers into one rule by combining Rule G-18 and G-30 and consolidating the existing interpretive guidance in MSRB Rule G-17 ("Conduct of Municipal Securities and Municipal Advisory Activities").

The revised Rule G-30 states that, regarding principal transactions, a dealer can only purchase municipal securities for its own account from a customer, or sell securities for its own account to a customer, at an aggregate price that is "fair and reasonable."

The rule amendments will become effective 60 days after the date of the SEC approval order.

See: 79 FR 27662.Related news: MSRB Proposes Amendments to Existing Obligations of Municipal Securities Dealers Related to Fair Pricing (with Lofchie Comment) (January 29, 2014).