Which statement best describes the MSRB anti-manipulation expectations?

• A. They require all market participants to record every trade for audit.
• B. They permit manipulative schemes if profits are high.
• C. They are intended to prevent schemes that distort price formation and mislead investors.
• D. They focus on marketing materials only.

Answer: (C)

Anti-manipulation rules are aimed at preventing schemes that distort price formation and mislead investors. The MSRB wants a fair, transparent muni market where prices reflect true supply and demand and investors can rely on the information they receive. That’s why the statement best describing MSRB anti-manipulation expectations is that these rules are intended to prevent practices that would manipulate prices or mislead market participants. The other ideas miss the mark: recording every trade is not the core focus of anti-manipulation, manipulating for profit is explicitly prohibited, and the rules cover more than just marketing materials, extending to actual trading practices and how prices are formed.