MSRB to Reduce Transaction Fees for Dealers

The MSRB Board announced today that they will reduce dealer transaction fees by 40 percent for 18 months beginning April 1, 2021. This will apply to underwriting assessments as well as the transaction and technology fees. The MSRB has told us informally that they estimate this fee reduction will save dealers $19 million over the 18-month period.

The press release can be viewed here

Reforming the MSRB’s finances remains a priority for BDA. Most recently we highlighted our concerns with the MSRB’s fee structure in our comment letter on MSRB’s strategic priorities. While we do not believe today’s step fully addresses our concerns, it is a welcome development.

The BDA comment letter can be viewed here

BDA today released the following public statement:

We are pleased to hear about the MSRB’s planned fee reduction. This is the longest and deepest fee reduction the Board will have implemented, and it is a welcome step towards stabilizing and right-sizing the MSRB’s finances. Still, it is a temporary solution, and we look forward to working with the Board to find a permanent MSRB fee structure that appropriately balances the contributions of dealers and municipal advisors and which does not result in unplanned surplus revenue.

We will continue to press the MSRB on financial reforms. Please call or write if you have any questions.

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