Municipal Securities Regulation and Enforcement: 2023 Mid-Year Review

In the first half of 2023, several rule changes have been proposed by the Municipal Securities Rulemaking Board (MSRB) and the U.S. Securities and Exchange Commission (SEC), including changes to “Best Execution” requirements and new data transparency requirements. The SEC’s “Regulation Best Execution” proposal has been met with particularly strong pushback, with many in the municipal market encouraging that it be dropped altogether. The industry continues to caution against overregulation, encouraging the SEC to conduct sufficient cost-benefit analyses before imposing more rules on the market. Further, the Financial Data Transparency Act of 2022 (FDTA), enacted by Congress as Title LVIII of the National Defense Authorization Act for Fiscal Year 2023, is expected to impact how information is prepared, disseminated, and consumed by municipal securities market participants.

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