MSRB Provides Guidance on Transaction Close-Outs

The MSRB provided FAQs on close-outs of interdealer municipal securities transactions.

The FAQs on MSRB Rule G-12 ("Uniform Practice") address:

• the definition of a close-out;

• close-out requirements;

• certain information that must be included in a notice of close-out;

• the "earliest timeline" for a close-out;

• the "flexibility" the purchasing dealer and the selling dealer have, respectively, during the close-out process; and

• whether it is the responsibility of the purchasing dealer to resolve an agreed-upon municipal securities transaction that has not been completed (a/k/a a "fail").