Who establishes positions in secondary market municipal bonds for a broker-dealer?

In the context of secondary market municipal bonds, the role of the trader is pivotal. A trader is responsible for executing buy and sell orders for securities and establishing positions in the market. This includes evaluating market conditions, determining appropriate pricing, and managing the broker-dealer's inventory of municipal bonds. Traders actively participate in trading these securities to ensure liquidity and price efficiency.

While underwriters play a key role in the primary market by assisting issuers in bringing new bonds to market, they are not involved in establishing positions in the secondary market. Analysts typically focus on researching and evaluating the potential value and risks of securities rather than actively trading them. An agent may facilitate transactions on behalf of clients, but does not establish positions on their own account as a trader does. Thus, the trader's central role in managing trading activities and positions makes them the correct choice for who establishes positions in the secondary market for municipal bonds.