MSRB Files Proposed Rule Changes with the SEC to Extend the Expiration of the Three-Hour Exception and to Require Underwriter Participation with DTCC's NIIDS System

Date: November 27, 2007

Contact:            Lynnette Kelly Hotchkiss, Executive Director
                        (703) 797-6600
                        lhotchkiss@msrb.org


MSRB Files Proposed Rule Changes with SEC to Extend the
Expiration of the Three-Hour Exception and to Require
Underwriter Participation with DTCC's NIIDS System

Alexandria, VA - Today the Municipal Securities Rulemaking Board (MSRB) filed with the Securities and Exchange Commission (the SEC) two proposed rule changes relating to transaction reporting of new issue municipal securities.  One proposed rule change consists of an amendment to Rule G-14, Reports of Sales or Purchases, to extend to June 30, 2008 the expiration date of the three-hour exception to the fifteen-minute reporting deadline for certain when, as and if issued transactions under Rule G-14 RTRS Procedures, paragraph (a)(ii)(C).  The three-hour exception is currently set to expire on December 31, 2007. 

The second proposed rule change consists of an amendment of Rule G-8, Books and Records, Rule G-9, Preservation of Records, and Rule G-34, CUSIP Numbers and New Issue Requirements, designed to improve new issue trade reporting.  This proposed rule change prescribes timetables for submission of data to Depository Trust and Clearing Corporation's New Issue Information Dissemination System and other underwriter procedures that are intended to ensure that all dealers have timely access to the new issue information that is needed for compliance with trade reporting requirements.  The MSRB proposes an effective date for this proposed rule change of June 30, 2008.   

A copy of a notice describing the proposed rule changes is attached and will soon be available at the MSRB's web site at www.msrb.org.


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.