New MSRB Rules on Retail Order Periods

The MSRB filed several amendments with the SEC for proposed rule changes to Rule G-8 ("Books and Records to Be Made by Brokers, Dealers and Municipal Securities Dealers"), G-11 ("Primary Offering Practices"), and G-32 ("Disclosures in Connection with Primary Offerings"). The proposed revisions will help address concerns that new issues of municipal bonds are not being distributed among different types of retail investors according to the preferences of the state or local government issuing the bonds.

Examples of the proposed changes include:

• Rule G-11: Adds several new definitions because of the proposed addition of provisions addressing retail order periods.
• The proposed rule change to Rule G-8(a)(viii)(B) would add the information required by Rule G-11(k) to the documentation that must be maintained in the files of the sole underwriter.
• The proposed rule change to Rule G-32(b)(vi)(C)(1)(a) adds to the data that must be submitted a requirement that the underwriter report to the EMMA system (for solely regulatory purposes) whether a primary offering of securities included a retail order period and each date and time (beginning and end) it was conducted.

See: SEC Rule Filing.