SIE practice questionmediumMunicipal Securities & MSRB Rules
A municipal securities dealer manipulates muni bond prices to create the illusion of active trading. Which authority regulates and enforces rules prohibiting this action?
- ASecurities Investor Protection Corporation (SIPC)
- BMunicipal Securities Rulemaking Board (MSRB)✓ Correct answer
- CFederal Deposit Insurance Corporation (FDIC)
- DCommodities Futures Trading Commission (CFTC)
Explanation
Why B — Municipal Securities Rulemaking Board (MSRB)
The MSRB writes rules for municipal dealers, but enforcement is carried out by the SEC or FINRA. SIPC provides insurance, FDIC relates to banks, and the CFTC regulates commodities, not municipal securities.
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