MSRB to Implement Revised Rules Addressing Retail Order Periods

Date: September 27, 2013

Contact: Jennifer A. Galloway, Chief Communications Officer
               (703) 797-6600


Alexandria, VA The Municipal Securities Rulemaking Board (MSRB) has received approval from the Securities and Exchange Commission (SEC) to revise MSRB rules to establish certain basic regulatory standards relating to the use of retail order periods in the primary offering of municipal securities. The revised rules support the MSRB’s mission to protect municipal securities issuers and investors.

State and local governments may designate that a specific amount or specific maturities of new bonds be marketed to “retail” investors. The revised rules address concerns that dealers may be disregarding issuers’ criteria for participation in a retail order period.

The MSRB amended its initial proposal to the SEC in response to public comments requesting clarification of certain terms and concepts in the proposal. For example, the MSRB clarified that the definition of “retail order periods” in its proposal covers both those retail order periods in which the issuer has specified that only retail orders be accepted and those periods in which the issuer instructs the dealer to prioritize retail orders over other types of orders.

Revised MSRB Rule G-11 on primary offering practices and related revisions to Rule G-8 on recordkeeping and Rule G-32 on disclosures in connection with primary offerings will take effect on March 31, 2014.

The MSRB protects investors, state and local governments and other municipal entities, and the public interest by promoting a fair and efficient municipal securities market. The MSRB fulfills this mission by regulating the municipal securities firms, banks and municipal advisors that engage in municipal securities and advisory activities. To further protect market participants, the MSRB provides market transparency through its Electronic Municipal Market Access (EMMA®) website, the official repository for information on all municipal bonds. The MSRB also serves as an objective resource on the municipal market, conducts extensive education and outreach to market stakeholders, and provides market leadership on key issues. The MSRB is a self-regulatory organization governed by a 21-member board of directors that has a majority of public members, in addition to representatives of regulated entities. The MSRB is overseen by the Securities and Exchange Commission and Congress.