MSRB Files Partial Amendment to Municipal Security "Close-Out" Proposal
In response to comments received regarding its initial proposal on close-out procedures for municipal securities, the MSRB filed a partial amendment ("Amendment No. 1") to (i) require a firm to resolve an inter-dealer fail within 10 calendar days (rather than 20 calendar days, as in the original proposal) and (ii) allow the buyer to grant the seller a one-time, 10-calendar-day extension. In light of the amendment, the MSRB asserted that the SEC has good cause to grant accelerated approval of Amendment No. 1 because "the revisions are consistent with the original proposal and unlikely to be controversial."
Related Articles
-
The MSRB proposed amendments to its uniform practice rule on close-out procedures for municipal securities.
-
The MSRB solicited comments on proposed draft amendments to MSRB Rule G-12 ("Uniform Practice"). The amendments would update the close-out procedures provided under Rule G-12(h), and require specifically that municipal securities transactions be closed out no later than 30 calendar days after the settlement date.
