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

MSRB REQUESTS COMMENT ON PROPOSAL TO CONSOLIDATE
TIME-OF-TRADE DISCLOSURE REQUIREMENTS FOR DEALERS

Alexandria, VA – The Municipal Securities Rulemaking Board (MSRB) is seeking comment on a proposal to consolidate into a new rule existing requirements for dealers to disclose material information to customers in connection with the purchase or sale of a municipal security.

These disclosure obligations are currently set forth in numerous interpretations to the MSRB’s rule on fair dealing. Under this guidance, dealers must disclose to their customers, at or prior to the time of trade, all material information about the transaction known by the dealer, as well as material information about the security that is reasonably accessible to the market.

“Disclosure of material information to investors is a cornerstone of the MSRB’s regulatory framework,” said MSRB Executive Director Lynnette Kelly. “Adding greater visibility to this requirement in the form of a stand-alone rule will highlight the importance of disclosure in the municipal market.” Kelly said the changes also will help dealers better understand and comply with their disclosure obligation.

Comments on the proposed consolidation of time of trade disclosure guidance, as well as the proposed new rule format, should be submitted no later than March 12, 2013.

The Municipal Securities Rulemaking Board (MSRB) was established by Congress in 1975 with the mission to protect investors, issuers and the public interest and to promote efficiency, competition and capital formation. MSRB is a private, self-regulatory organization governed by an independent board of directors with market knowledge and expertise. MSRB does not receive federal appropriations and is funded primarily through fees paid by regulated entities. MSRB is overseen by Congress and the Securities and Exchange Commission.

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