Municipal Syndicate Operations
Chapters in this video
- 0:00 Introducing the syndicate cast and the syndicate letter
- 1:07 Eastern versus Western accounts: who pays for unsold bonds
- 3:13 Slicing the underwriter's spread: fees, takedown, and reallowance
- 4:44 Order priority ladder and the customer protection rule
- 6:39 Syndicate settlement and the 30-calendar-day deadline
- 7:17 Rapid-fire exam recap
What this video covers
- What a syndicate letter covers, and why members submit a good faith deposit (typically 1-2% of par value) before participating
- Eastern (undivided) accounts versus Western (divided) accounts, and why shared liability makes Eastern the riskier structure
- The three slices of the underwriter's spread: management fee, underwriting fee, and selling concession
- Why the selling concession is always the largest spread component, and how total takedown excludes the management fee
- What total takedown syndicate members earn versus what reallowance non-member dealers earn
- The standard priority-of-orders ladder for syndicate sales, and why customer orders outrank member orders regardless of the written ladder
- The 30-calendar-day settlement deadline for syndicate accounts after securities are delivered
Read the full lesson, free
This video's complete written lesson is free to read in the CertFuel app, no signup wall. When you're ready to drill the topic, the full Series 7 course adds adaptive practice questions and spaced-repetition flashcards.
Start on this site: free Series 7 practice questions · Series 7 pass rate