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Contact: Jennifer A. Galloway, Chief Communications Officer
             (703) 797-6600
             jgalloway@msrb.org

MSRB REQUESTS COMMENT ON PROPOSAL TO CONSOLIDATE
TIME-OF-TRADE DISCLOSURE REQUIREMENTS FOR DEALERS

Alexandria, VA – The Municipal Securities Rulemaking Board (MSRB) is seeking comment on a proposal to consolidate into a new rule existing requirements for dealers to disclose material information to customers in connection with the purchase or sale of a municipal security.

These disclosure obligations are currently set forth in numerous interpretations to the MSRB’s rule on fair dealing. Under this guidance, dealers must disclose to their customers, at or prior to the time of trade, all material information about the transaction known by the dealer, as well as material information about the security that is reasonably accessible to the market.

“Disclosure of material information to investors is a cornerstone of the MSRB’s regulatory framework,” said MSRB Executive Director Lynnette Kelly. “Adding greater visibility to this requirement in the form of a stand-alone rule will highlight the importance of disclosure in the municipal market.” Kelly said the changes also will help dealers better understand and comply with their disclosure obligation.

Comments on the proposed consolidation of time of trade disclosure guidance, as well as the proposed new rule format, should be submitted no later than March 12, 2013.

The Municipal Securities Rulemaking Board (MSRB) protects and strengthens the municipal bond market, enabling access to capital, economic growth, and societal progress in tens of thousands of communities across the country. The MSRB fulfills this mission by creating trust in our market through informed regulation of dealers and municipal advisors that protects investors, issuers and the public interest; building technology systems that power our market and provide transparency for issuers, institutions, and the investing public; and serving as the steward of market data that empowers better decisions and fuels innovation for the future. The MSRB is a self-regulatory organization governed by a board of directors that has a majority of public members, in addition to representatives of regulated entities. The MSRB is overseen by the Securities and Exchange Commission and Congress.

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