New bidding rules at Zions

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denismurf
Posts: 544
Joined: Wed Sep 19, 2007 6:29 pm

New bidding rules at Zions

Post by denismurf »

I have been buying muni bonds at Zions Direct auctions for about 10 years, with stable rules.

This week, a big rule suddenly changed with no notice, at least no notice that I saw.
Let's say you see a list of 10 bond lots in auctions that close in a week, so you make a note to revisit the auction on the day it closes so you can bid on a bond that looks interesting.

BUT, when you sign back in on the closing day, that bond has disappeared from the day's list of open auctions. When that happened to me today, I phoned Zions and asked the rep what happened to the bond I was interested in.

He explained that some bonds were now being offered on auction only to institutional investors, not to retail investors like me. Therefore, the bond I wanted to bid on was not available to me. The rep did not know whether this new rule was created by Zions on its own or in reaction to guidance from FINRA or some other agency.

If others have encountered this change, can you tell me where it came from and why?

Or maybe something else is going on. Maybe somebody at Zions messed up and allowed me to see the bonds I was not supposed to see.
Dulocracy
Posts: 2303
Joined: Wed Feb 27, 2013 1:03 pm
Location: Atlanta, GA

Re: New bidding rules at Zions

Post by Dulocracy »

Reading between the lines that "some" bonds will only be available to institutional investors, it sounds like they are saying they are letting institutions get first pick and you get the leftovers.
I'm not a financial professional. Post is info only & not legal advice. No attorney-client relationship exists with reader. Scrutinize my ideas as if you spoke with a guy at a bar. I may be wrong.
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