WASHINGTON -- If an appeals court declares the Municipal Securities Rulemaking Board's pay-to-play rule unconstitutional, the board will probably propose a "tough" new rule requiring disclosure of political contributions, board officials said yesterday.

Alabama bond dealer William Blount has asked a federal appeals court to overturn the board's Rule G-37, which bars broker-dealers that make contributions to issuer clients from doing business with them for two years afterwards.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.