SIE practice questionmediumMunicipal Securities & MSRB Rules
A municipal securities dealer manipulates muni bond prices to create the illusion of active trading. Which authority enforces rules prohibiting this action?
- ASecurities Investor Protection Corporation (SIPC)
- BSEC and FINRA✓ Correct answer
- CFederal Deposit Insurance Corporation (FDIC)
- DCommodities Futures Trading Commission (CFTC)
Explanation
Why B — SEC and FINRA
The MSRB writes rules for municipal securities dealers, but enforcement is carried out by the SEC and FINRA. SIPC provides broker-dealer customer protection, the FDIC relates to banks, and the CFTC regulates commodities and derivatives markets.
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