MSRB NOTICE 2008-41 (SEPTEMBER 30, 2008)

REMINDER OF EFFECTIVE DATE OF MSRB RULES RELATING TO DTCC'S NIIDS SYSTEM

The MSRB reminds dealers that today amendments to MSRB Rule G-8, on books and records, Rule G-9, on preservation of records, and Rule G-34, on CUSIP numbers and new issue requirements, become effective.  These rule changes accelerate the timing for CUSIP number assignment and, with the exception of new issues of short-term instruments with less than nine months in effective maturity, require underwriters[1] to: (i) submit certain information about a new issue of municipal securities to Depository Trust and Clearing Corporation’s (DTCC) New Issue Information Dissemination System (NIIDS) within set timeframes; and (ii) set and disseminate a “Time of First Execution” that allows time for market participants to access necessary information in preparation for trade reporting prior to beginning trade executions in the issue.

A summary and the complete text of the amendments is available in MSRB Notice 2007-36 (November 27, 2007) at the MSRB web site (www.msrb.org).

Questions about this notice may be directed to Justin R. Pica, Uniform Practice Policy Advisor, at 703-797-6716. 

September 30, 2008


[1] Rule G-34 defines “underwriter” very broadly to include a dealer acting as a placement agent as well as any dealer purchasing new issue securities from the issuer as principal.  If there is an underwriting syndicate, the lead manager is considered to be the “underwriter” for purposes of Rule G-34.