The SEC approved an amendment to MSRB Rule G-12 ("Uniform Practice") to require the completion of allocations, confirmations, and affirmations by the end of trade date for municipal securities transactions.
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The MSRB proposed a rule change "to promote the completion of allocations, confirmations, and affirmations by the end of trade date for transactions in municipal securities between brokers, dealers and municipal securities dealers and their institutional customers."
The MSRB requested comment on draft amendments to Uniform Practice regulations which would retire or reorganize interpretive guidance pertaining to confirmation disclosure requirements for inter-dealer municipal securities transactions.
The MSRB examined potential causes of recent increases in secondary market customer costs for fixed-rate municipal securities. The rise in these costs, as measured in effective spread, reversed a consistent downward trend for over a decade.
The MSRB adopted amendments to its rules on uniform practice and confirmation, clearance and settlement to "define regular-way settlement for municipal securities transactions as occurring one business day after the trade date" and to align with recent SEC rule amendments to shorten the settlement cycle.