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MSRB gets SEC go-ahead for rules to accelerate syndicate, secondary-market account settlements
By Jennifer Chiou
New York, Sept. 30 - The Municipal Securities Rulemaking Board announced that the Securities and Exchange Commission has approved amendments to Rules G-11 and G-12 regarding settlement dates and payments of designations.
According to an MSRB news release, the amendments accelerate the settlement of syndicate accounts and secondary-market trading accounts as well as the payment of designations by shortening certain time periods within the rules.
The changes are effective for new issues of municipal securities for which the time of formal award occurs after Oct. 28 as well as for secondary-market trading accounts formed after the same date.
The SEC also approved amendments to new issue syndicate practices and uniform practice.
Specifically, the amendments change the deadline for the settlement of syndicate accounts to 30 calendar days from 60 days following the date all securities have been delivered by the syndicate or account manager to the syndicate or account members.
The changes also move up the payment of designations to 10 calendar days from 30 days after bond closing.
To facilitate implementation of these reduced time periods, the MSRB said that proposed amendments add a new requirement that all syndicate members submit their designations to the syndicate manager within two business days after bond closing.
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