MSRB Notice to Members: MSRB Requests Comment on Revised Proposal Regarding Retail Order Periods

The MSRB has requested comment on revised amendments to MSRB rules which are intended to address concerns that new issues of municipal bonds are not being distributed among different types of investors according to the preferences of the state or local government issuing the bonds. The proposed rule changes are designed to ensure that dealers (i) honor the wishes of their state and local government clients, and (ii) engage in fair pricing practices for retail investors. In March 2012, the MSRB sought comment on proposed amendments to MSRB rules concerning retail order periods. Following the end of the comment period, the MSRB revised its proposed amendments to MSRB Rule G-11 to more narrowly define the term "selling group" and to clarify the obligations of syndicate managers. The MSRB revised its proposed amendments to Rule G-8 on record keeping to require both syndicate managers and sole managers to maintain records of all pricing information required to be distributed pursuant to Revised Draft Rule G-11. The revised draft interpretive notice limits its focus to retail order period pricing.

Comments Due: November 2, 2012.

View notice and revised rules here (links externally to MSRB website).