Press Releases


Proposed MSRB Rule

NEWS RELEASE

April 11, 2011


TO OUR VALUED CLIENTS:

Below are a few of the elements of a proposed Rule under consideration from the MSRB for your information.  There is still time to respond in a comment letter to the MSRB, the deadline is April 21, 2011.  The number of letters opposing this rule really does make a difference.  If they don’t receive many letters this is likely to pass in its current form.  Please feel free to forward this on to anyone or any firm that you believe should see it.


Did you know?


Draft MSRB rule G-43 will impact the way you do business with your broker. The following sections will have direct impact on the dealers involved in Bid Wanted.

  • G-43(a)(iv)
                        The Broker's Broker is required to determine if a high bid does not represent a fair and reasonable price and to inform the selling dealer if such a determination is made. If the selling dealer desires to execute such a sale they must provide a WRITTEN ACKNOWLEDGEMENT that they understand our assessment and still want to sell the securities. If they do not, we are prohibited from buying the securities.
  • G-43(c)(iv)
                        Broker's Brokers are prohibited from informing a bidder on 'where they stand' in the bidding process.
  • G-43(c)(vi)
                        If a Broker's Broker believes that a bid has been submitted in error, they may only contact the bidder if they have WRITTEN PERMISSION from the seller to do so (or given the seller advance disclosure of their procedures to contact a bidder in such instances) AND GIVE ALL BIDDERS THE OPPORTUNITY TO ADJUST THEIR BIDS.
  • G-43(c)(vii)
                        A Broker's Broker may not adjust a bid without the bidder's WRITTEN INSTRUCTIONS.

For More Information please click here. MSRB NOTICE 2011-18 (FEBRUARY 24, 2011)

You may submit comments on the draft rules through April 21, 2011, by e-mail to: CommentLetters@msrb.org with 'Notice 2011-18' included in the subject line of the email. 

You may also submit comments by regular mail to:

Ronald W. Smith, Corporate Secretary
MSRB
1900 Duke Street 
Alexandria, Virginia 22314

Finally, we have attached the comment letter that we worked on with SIFMA (Paige Pierce our CEO chaired the SIFMA MSBB Committee from 2009-2011, her committee was responsible for the comment letter) in the first round of the G-43 proposal process. We are now in the second round of comment letters (due by 4/21/11) and again the more comment letters the MSRB receives from the dealer community the better. This is a process where your voice really does matter – please take the time to comment.

SIFMA MSRB Letter Rule G43