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Muni market transaction costs remain high, despite customer protection rules, study says

State and local governments sell bonds in the roughly $4 trillion municipal market to finance infrastructure such as roads, sewers and high schools. (Photo: iStock) — State and local governments sell bonds in the roughly $4 trillion municipal market to finance infrastructure such as roads, sewers and high schools. **(Photo: iStock)**

4 min read . Updated: 04 Aug 2022, 07:01 PM IST Heather Gillers, The Wall Street Journal

Researchers find dealers mark up prices when customers are less likely notice

Municipal bond dealers set prices well above what they pay for the securities, reaping windfalls at the expense of individual investors despite recent regulation aimed at curbing so-called markups, according to an academic study of trading data expected to be released Thursday.