MSRB Requests Comment on Modernizing Close-Out Procedures

Date: January 6, 2016

Contact: Jennifer A. Galloway, Chief Communications Officer
              202-838-1500
              jgalloway@msrb.org

MSRB REQUESTS COMMENT ON MODERNIZING CLOSE-OUT PROCEDURES

Washington, DC – The Municipal Securities Rulemaking Board (MSRB) is seeking public comment on a proposal to update its requirements for procedures for municipal securities dealers related to the close-out of open inter-dealer transactions. Proposed amendments to MSRB Rule G-12 would require that open transactions be closed out no later than 30 calendar days after settlement date, and make other changes designed to accelerate the close-out process.

“Evolutions in the municipal securities market have modernized the manner in which inter-dealer transactions are cleared and settled,” said MSRB Executive Director Lynnette Kelly. “More timely resolution of open transactions would give investors greater certainty in their purchases, and would benefit dealers by reducing the risk and costs associated with failed inter-dealer trades.”

The proposed rule change is the result of an ongoing effort to promote regulatory efficiency by revising, reorganizing or retiring MSRB rules based on an assessment of current market practices and input from regulated entities, other market stakeholders and fellow regulators. Rule changes resulting from the review seek to promote more effective and efficient compliance for regulated entities, and to align MSRB rules with those of other self-regulatory organizations or government agencies where appropriate.

Comments should be submitted no later than March 6, 2016.


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.