MSRB Proposes Amending Rules On Primary Offering Practices

The MSRB proposed to amend MSRB Rule G-11 (Primary Offering Practices) and Rule G-32 (Disclosures in Connection with Primary Offerings). According to the MSRB, the proposal is intended to improve the general practices that underwriters undertake in a primary offering of municipal securities.

The proposed amendments to Rule G-11 would:

• improve the information dissemination requirements to obligate the senior syndicate manager to release "free-to-trade" information to all syndicate and selling group members simultaneously;
• mandate that the syndicate manager provides the issuer with information with respect to (i) designations, (ii) group net sales credit and (iii) allocations of the securities in a primary offering; and