MSRB Adopts Amendments to Rules G-12 and G-15, Shortening Regular-Way Settlement Transaction to T+1
On May 25, 2023, the Municipal Securities Rulemaking Board (MSRB) received approval from the SEC on May 25, 2023, to amend MSRB Rules G-12, on uniform practice, and G-15, on confirmation, clearance, settlement and other uniform practice requirements with respect to transactions with customers.
MSRB Rules G-12 and G-15, as amended, define regular-way settlement for municipal securities transactions as occurring one business day after the trade date (“T+1”) and make a technical amendment to Rule G-12 to update an outdated cross-reference. The amendments align with regular-way settlement on T+1 for equities and corporate bonds under Exchange Act Rule 15c6-1 (“Amended SEC Rule 15c6-1”) to further shorten the settlement process, requiring the settlement of most equity and corporate bond transactions on T+1.
The compliance date for the amendments is May 28, 2024, which aligns with the implementation date for Amended SEA Rule 15c6-1.
• MSRB Regulatory Notice 2023-06 (May 30, 2023): MSRB Adopts Amendments to Rules G-12 and G-15, Shortening Regular-Way Settlement for Municipal Securities Transactions to T+1
SEC Approves New MSRB Rule G-46 On Duties Of Solicitor Municipal Advisors And Related Amendments To MSRB Rule G-8
On March 29, 2023, the MSRB received approval from the SEC to create a new rule, MSRB Rule G-46, on duties of solicitor municipal advisors and amend MSRB Rule G-8, on books and records. New MSRB Rule G-46 is designed to establish the core standards of conduct for solicitor municipal advisors when engaging in solicitation activities that would require them to register with the SEC and the MSRB as municipal advisors. The related amendments to Rule G-8 establish recordkeeping requirements to facilitate and document compliance with the new obligations of Rule G-46.
The adoption of Rule G-46 and the related amendments to Rule G-8 furthers the MSRB’s mandate to protect municipal entities, obligated persons, investors, and the public interest. The compliance date for Rule G-46 and the related amendments to Rule G-8 is March 1, 2024.
MSRB Regulatory Notice 2023-03 (March 30, 2023): SEC Approves New MSRB Rule G-46 on Duties of Solicitor Municipal Advisors and Related Amendments to MSRB Rule G-8