On April 28th, the Municipal Securities Rulemaking Board (MSRB) released for public review and comment a rule proposal to modify Rule G‑12(c). The proposed rule would update Rule G‑12(c), which regulates confirmation requirements for inter‑dealer municipal securities transactions that cannot be processed through automated comparison systems. The proposed rule supports the MSRB’s ongoing review of its rules, published guidance, and rulebook modernization efforts to align with current technology and operational standards.
The rule change proposal would introduce the following changes:
- update well established interpretive guidance that would formally codify it into rule text, while sunsetting or revising older portions
- simplify and modernize how dealers exchange and compare trade confirmations when automated comparison not available (including timelines and documentation expectations)
- implement technical revisions to streamline the rule and improve consistency
- enhance conformity between Rule G‑12 and other MSRB rules, including those governing automated comparison and transaction reporting
- delete obsolete or duplicative provisions to reduce confusion and facilitate compliance.
Should the SEC approve the rule change, the MSRB will announce an effective date within 90 days. The proposal states that the effective date would be no later than one year following SEC approval.
The SEC has released the filing for public comment, allowing market participants an opportunity to provide feedback prior to any final approval. For further information on the proposed rulemaking, including how to submit comment and details on the specific comment period, please see the rule proposal on msrb.org.
Source:
Proposed Rule to Amend to Rule G-12(c) (msrb.org)
