Reuters: Regulatory News: Muni board inches toward more electronic trading

Reuters: Regulatory News Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

Muni board inches toward more electronic trading Mar 26th 2012, 19:36 March 26 | Mon Mar 26, 2012 3:36pm EDT March 26 (Reuters) - The board overseeing the $3.7 trillion U.S. municipal bond market on Monday moved closer to allowing more investors to use electronic trading platforms, officially seeking a change in a key regulatory definition. The Municipal Securities Rulemaking Board petitioned the Securities and Exchange Commission to redefine "sophisticated investor," which would help determine the suitability of transactions for some bond buyers. The MSRB, a self-regulatory organization made up of issuers, analysts and bankers, writes the rules that the SEC enforces. Specifically, the change would define a sophisticated investor as an institutional buyer that can independently gauge investment risks and market values of securities and can evaluate the recommendations of broker-dealers. If a buyer is not considered sophisticated, then investor protections could apply and a broker-dealer would be accountable for making sure the buyer understood the purchase. The board began updating its rules on electronic trading platforms in November.

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