What is a SMMP?
2 Pursuant to MSRB Rule D-15, the term “sophisticated municipal market professional” or “SMMP” is defined by three essential. requirements: the nature of the customer; a determination of sophistication by the broker, dealer, or municipal securities dealer (“Dealer”); and an affirmation by the customer.
Who can be treated as a Sophisticated municipal market Professional?
To be considered an SMMP, a customer must be (1) a bank, savings and loan association, insurance company or registered investment company; (2) an investment adviser registered either with the SEC under Section 203 of the Investment Advisers Act of 1940 or with a state securities commission (or any agency or office …
What is a sophisticated muni market professional?
The term “sophisticated municipal market professional” or “SMMP” is defined by three essential requirements: the nature of the customer; a determination of sophistication by the broker, dealer or municipal securities dealer (“dealer”); and an affirmation by the customer; as specified below. (a) Nature of the Customer.
What is material events in a bond?
Material events are municipal bond issuer information considered to be significant by a reasonable investor. “Material Events” include but are not limited to: Full description of security – Issuer name, bond type (G.O., revenue, pre-refunded, etc.), coupon, maturity, and redemption features (calls, sinking funds, etc.)
Who determines the minimum denomination of a muni bond?
Background. Issuers set minimum denominations for transactions in municipal bonds. The minimum denomination for a municipal bond should be disclosed in the bond offering documents. An issuer may set a high minimum denomination (commonly $100,000) to qualify for exemptions from SEC Rule 15c2-12.
What is municipal liquidity facility?
The Municipal Liquidity Facility (MLF) was a Federal Reserve (Fed) program to buy up to $500 billion in debt from state and local governments that suffered revenue declines as a result of the COVID-19 pandemic.
What is a material event?
So, what are material events? Material events include: A merger, acquisition, or consolidation with another company. The sale of company securities including equity or debt, and their derivatives, either privately or in the public markets. An event which materially changes the company’s tax and/or corporate structure.
What material events must be reported by the issuer?
Issuers must disclose any default, event of acceleration, termination event, modification of terms, or other similar events under the terms of the financial obligation of the issuer or obligated person, any of which reflect financial difficulties. A failure to comply with the undertaking would be a breach of contract.
Can municipal bonds trade in denominations below the minimum amount?
However, to help to ensure that municipal securities dealers observe minimum denominations in the official statement of a bond issue, the MSRB in 2002 established a rule that generally prohibits dealers from effecting a municipal securities transaction with a customer in an amount below the minimum denomination of the …
What are the rules of the SMMP in 2002?
The 2002 SMMP Notice also addresses a dealer’s obligations to an SMMP under Rule G-17 (on fair dealing), Rule G-18 (on execution of transactions), Rule G-19 (on suitability) and Rule G-13 (on quotations).
When did SIFMA release municipal securities issue model?
On May 2, 2017, SIFMA released municipal security issue price model documents in an effort to aid industry market participants in compliance with the Treasury Department issue price rules for municipal securities, which became effective on June 7, 2017.
Which is the best definition of a SMMP?
As a result, the MSRB’s proposed definition is consistent with FINRA Rule 2111. Specifically, the MSRB proposes that an SMMP be defined as an institutional customer of a dealer that:
When did MSRB issue ” sophisticated municipal market professionals ” notice?
Recently, the MSRB issued a Notice regarding “sophisticated municipal market professionals” (“SMMPs”), which is intended to update a prior notice issued in 2002 (the “2002 SMMP Notice”) 1 in light of subsequent changes in the markets.