MSRB Announces SEC Approval of Rule Amendments for T+2 Settlement Cycle (MSRB Reg. Notice 2016-15)

The MSRB informed member firms that the SEC approved its proposal to amend Rules G-12 and G-15 as to the definition of "regular-way settlement" for municipal securities. The amended rules define "regular-way settlement" to mean a two-business-day settlement cycle occurring immediately after the trade date ("T+2").

The MSRB will publish a notice announcing the compliance date of the amendments on the MSRB website. The compliance date will correspond to the industry's broader transition to a T+2 regular-way settlement, which is dependent upon the SEC making corresponding amendments to Exchange Act Rule 15c6-1(a).