MSRB Holds Quarterly Meeting to Discuss Pricing Information, Best Execution and T+2 Settlement Cycle

At their quarterly meeting, the MSRB Board (the "Board") discussed several rulemaking proposals and corporate matters that will impact the fiscal year. The Board revisited an earlier proposal to require dealers to provide pricing reference information for municipal securities transactions on retail customer confirmations, and directed staff to prepare a second proposal for public comment. The Board also reviewed draft guidance that would require dealers to seek the most favorable terms reasonably available for their retail customers' transactions. The guidance will be finalized in the coming weeks to ensure that dealers may use it to help implement new Rule G-18 by the effective date in December 2015.Also discussed were comments received on the MSRB's proposal to modify the application of the standard of independence under MSRB Rule A-3. The Board directed MSRB staff to develop a rule proposal on changes to MSRB Rule G-12 ("Uniform Practices") in order to address outdated requirements for closeout procedures for dealers purchasing municipal securities. Finally, the Board discussed the securities industry's voluntary initiative to shorten the current T+3 settlement cycle to T+2 to support any rule changes necessary to accommodate the shortened settlement cycle.

See: MSRB Press Release.