Muni Time of Trade Disclosures

Overview

MSRB Rule G-47 prohibits a muni dealer from selling a municipal security to a customer, or purchasing a municipal security from a customer, whether unsolicited or recommended, and whether in a primary offering or secondary market transaction, without disclosing to the customer, orally or in writing, at or before the time of trade, all material information known about the transaction, as well as material information about the security that is reasonably accessible to the market. Interpretation ".03" to the Rule describes information that may be material to customer, such as the mechanics of an auction rate security process, the bond's credit rating, and any credit enhance provided the bond. An exemption from the MSRB Rule G-47 obligations is available when dealing with customers who are "sophisticated municipal market professionals" as defined in MSRB Rule G-48.

See also the topic pages on Suitability, Mark-Ups, SMMPs, and Muni Distribution.

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