MSRB NOTICE 2008-20 (April 22, 2008)

Amendment to Proposed Rule Changes Requiring Underwriter Participation with DTCC’s NIIDS System

On April 22, 2008, the Municipal Securities Rulemaking Board (“MSRB”) filed with the Securities and Exchange Commission an amendment regarding proposed rule changes requiring underwriter participation with The Depository Trust and Clearing Corporation’s (“DTCC”) New Issue Information Dissemination Service (“NIIDS”).[1]  The amendment provides that the previously proposed amendments to MSRB Rules G-8, G-9, and G-34 would become effective on September 30, 2008 rather than June 30, 2008 as originally filed.[2]  The proposed amended rule language of Rules G-8, G-9, and G-34 remains as originally filed.

The amendment addresses concerns raised by commentators that the originally proposed June 30, 2008 effective date would not provide adequate time for dealer testing of NIIDS.  The MSRB believes that the new effective date of September 30, 2008 will address commentators concerns and will allow for the additional time necessary for implementation of NIIDS.

Questions about this notice may be directed to Justin R. Pica, Uniform Practice Policy Advisor, or Sara K. Pranio, Uniform Practice Assistant.

April 22, 2008