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Notice 2022-13 - Request for Comment
Publication date: | Comment due:
Request for Comment on Draft Amendments to Create an Exemption for Municipal Advisor Representatives from Requalification by Examination
Information for:

Issuers, Municipal Advisors

Rule Number:

Rule G-3

All Comments to Notice 2022-13

  1. National Association of Municipal Advisors: Letter from Susan Gaffney, Executive Director, dated January 30, 2023
  2. Securities Industry and Financial Markets Association: Letter from Leslie M. Norwood, Managing Director and Associate General Counsel, dated January 30, 2023
  3. Wulff, Hansen & Co.: Letter from Chris Charles, President, dated December 29, 2022
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Notice 2022-11 - Request for Comment
Publication date: | Comment due:
Request for Comment on Draft Amendments to MSRB Rule G-32 to Streamline the Deadlines for Submitting Information on Form G-32
Rule Number:

Rule G-32

All Comments to Notice 2022-11

  1. Bond Dealers of America: Letter from Michael Decker, Senior Vice President, January 17, 2023
  2. Securities Industry and Financial Markets Association: Letter from Leslie M. Norwood, Managing Director and Associate General Counsel, dated January 27, 2023
  3. XBRL US: Letter from Campbell Pryde, President and CEO, dated December 15, 2022
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Notice 2022-07 - Request for Comment
Publication date: | Comment due:
Request for Comment on Transaction Reporting Obligations under MSRB Rule G-14
Information for:

Bank Dealers

Rule Number:

Rule G-14

All Comments to Notice 2022-07

  1. American Securities Association: Letter from Kelli McMorrow, Head of Government Affairs, dated September 30, 2022
  2. Amuni Financial, Inc.: Letter from Mike Petagna, President, dated August 23, 2022
  3. Bailey, Bill: Email dated August 4. 2022
  4. Belle Haven Investments, L.P.: Letter from Matt Dalton, Chief Executive Officer, dated October 3, 2022
  5. Bernardi Securities, Inc.: Letter from Ronald P. Bernardi, President and CEO, dated September 30, 2022
  6. BetaNXT: Letter from Will Leahey, Head of Regulatory Compliance, dated October 3, 2022
  7. Bond Dealers of America: Letter from Michael Decker, Senior Vice President for Public Policy, dated October 3, 2022
  8. Bryant Bank: Letter from David Long, Executive Vice President, Correspondent Banking/Capital Markets, and Vincent Webb, Managing Director, Bryant Bank Capital Markets, dated September 28, 2022
  9. Cambridge Investment Research, Inc.: Letter from Seth A. Miller, General Counsel, President, Advocacy and Administration, dated October 3, 2022
  10. Cantella & Co., Inc.: Email from Jay Lanstein, Chief Executive Officer and Chief Technology Officer, dated September 16, 2022
  11. Cantone Research, Inc.: Email from Maryann Cantone dated August 2, 2022
  12. Colwell, J.D.: Letter dated September 9, 2022
  13. DeRobbio, Raymond: Email dated August 3, 2022
  14. Dimensional Fund Advisors LP: Letter from Gerard O’Reilly, Co-CEO and Chief Investment Officer, and David A. Plecha, Global Head of Fixed Income, dated September 26, 2022
  15. Estrada Hinojosa & Co., Inc.: Letter from Robert A. Estrada, Chairman (Emeritus), dated October 3, 2022
  16. Falcon Square Capital, LLC: Letter from Melissa P. Hoots, CEO/CCO, dated October 3, 2022
  17. Financial Information Forum: Letter from Howard Meyerson, Managing Director, dated October 3, 2022; Supplemental Letter from Howard Meyerson, Managing Director, dated April 27, 2023
  18. Ford & Associates, Inc.: Letter from Jonathan W. Ford, Senior Vice President, dated September 9, 2022
  19. Hartfield, Titus & Donnelly, LLC: Letter from Edward J. Smith, General Counsel and Chief Compliance Officer, dated September 14, 2022
  20. Herbert J. Sims & Co., Inc.: Letter from Melissa Messina, Executive Vice President, Associate General Counsel, R. Jeffrey Sands, Managing Principal, General Counsel, and William Sims, Managing Principal, dated October 3, 2022
  21. Higgins Capital Management, Inc.: Email from Deborah Higgins dated September 19, 2022
  22. Hilltop Securities: Letter from Lana Calton, Executive Managing Director, Head of Clearing, dated October 3, 2022
  23. Honey Badger Investment Securities, LLC: Letter from Joe Lee, CEO, dated September 30, 2022
  24. ICE Bonds Securities Corporation: Letter from Robert Laorno, General Counsel, dated September 30, 2022
  25. InspereX LLC: Letter from Robert D. Bullington, Vice President, Compliance Officer, dated October 3, 2022
  26. Institutional Securities Corporation: Letter from Scott Hayes, President and CEO, and Chris Neidlinger, CCO, dated September 30, 2022
  27. Investment Company Institute: Letter from Sarah A. Bessin, Associate General Counsel, dated October 3, 2022
  28. Investment Placement Group: Email from Darius Lashkari dated August 2, 2022
  29. Isaak Bond Investments: Letter from John Isaak, Sr. Vice President, dated August 16, 2022
  30. Isaak Bond Investments, Inc.: Letter from Donald J. Lemek, VP-Operations and CFO
  31. Kiley Partners, Inc.: Email from Mike Kiley, Owner, dated September 27, 2022
  32. Madison Paige Securities: Letter from Gary Herschitz, CEO, dated September 30, 2022
  33. Mayes, Christopher: Email dated September 27, 2022
  34. Miner, Kathy: Letter dated October 2, 2022
  35. Municipal Securities Rulemaking Board: Memorandum dated September 12, 2022
  36. Northland Securities Inc.: Letter from Randy Nitzsche, President and CEO, dated October 3, 2022
  37. Oberweis Securities, Inc.: Letter from James W. Oberweis, President, dated September 28, 2022
  38. Regional Brokers, Inc.: Letter from H. Deane Armstrong, CCO, and Joseph A. Hemphill III, CEO, dated October 3, 2022
  39. Robert Blum Municipals, Inc.: Letter from Robert Blum, President, dated September 16, 2022
  40. Roosevelt & Cross, Inc.: Letter from F. Gregory Finn, Chief Executive Officer, dated October 3, 2022
  41. RW Smith & Associates, LLC: Letter from Christopher Ferreri, President, dated September 13, 2022
  42. SAMCO Capital Markets, Inc.: Letter from Lee Maverick, Chief Compliance Officer, dated September 30, 2022
  43. Sanderlin Securities LLC: Letter from Matthew Kamler, President, dated September 27, 2022
  44. Securities Industry and Financial Markets Association and the SIFMA Asset Management Group: Letter from Kenneth E. Bentsen, Jr., President and CEO, dated October 3, 2022
  45. Sentinel Brokers Company, Inc.: Letter from Joseph Lawless, CEO, dated September 30, 2022
  46. Sheedy, Edward: Email dated August 2, 2022
  47. Stern Brothers and Co.: Letter dated October 3, 2022
  48. TRADEliance, LLC: Letter from Jesy LeBlanc and Kat Miller dated September 28, 2022
  49. Tuma, William: Email dated August 8, 2022
  50. Wells Fargo & Company: Letter from Nyron Latif, Head of Operations, Wells Fargo Wealth and Investment Management, and Todd Primavera, Head of Operations, Wells Fargo Corporate and Investment Bank, dated October 3, 2022
  51. Wiley Bros.-Aintree Capital, LLC: Letter from Keener Billups, Managing Director, Municipal Bond Department, dated September 20, 2022
  52. Wintrust Investments, LLC: Email from Thomas Kiernan dated August 2, 2022
  53. Zia Corporation: Email from Glenn Burnett dated September 6, 2022
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Interpretive Guidance - Interpretive Notices
Publication date:
Transactions in Municipal Collateralized Mortgage Obligations: Rule G-15
Rule Number:

Rule G-15

The Board has become aware that some municipal issuers recently have issued securities that are structured as collateralized mortgage obligations (CMOs). Like the CMOs issued by non-municipal issuers, these securities represent interest in pools of mortgages and are partitioned into several classes (or tranches), which are serialized as to priority for redemption and payment of principal.

Since these "municipal CMOs" are being issued directly by political subdivisions, agencies or instrumentalities of state or local governments, it appears that they may be "municipal securities," as that term is defined under section 3(a)(29) of the Securities Exchange Act of 1934.[1] Although the interest paid on these instruments may be subject to federal taxation, the Board reminds dealers that transactions in municipal securities are subject to Board rules whether those securities are taxable or tax-exempt. Accordingly, dealers executing transactions in municipal CMOs should ensure that they are in compliance with all applicable Board rules. For example, dealers should ensure that all Board requirements regarding professional qualifications and recordkeeping are observed.[2]

Because the interest and principal payment features of municipal CMOs are very different from those of traditional municipal bonds, dealers should take care to ensure that all Board rules designed for the protection of customers are observed. This includes ensuring that: (i) all material facts about each transaction are disclosed to the customer, in compliance with rule G-17; (ii) each transaction recommended to a customer is suitable for the customer, in compliance with rule G-19; and (iii) the price of each customer transaction is fair and reasonable, in compliance with rule G-30. With respect to the material facts that should be disclosed to customers, dealers should ensure that customers are adequately informed of the likelihood of "prepayment" of principal on the securities and the likelihood of the securities being redeemed substantially prior to the stated maturity date. If the amount of principal that will be delivered to the customer differs from the "face" amount to be delivered, the customer also should be informed of this fact, along with the amount of the principal that will be delivered.

The Board also has reviewed the requirements of rule G-15(a)(i)(l)[*] with respect to confirmation disclosure of "yield to maturity" or "yield to call" on customer confirmations in these securities. Because CMOs typically pay principal to holders prior to maturity and because the actual duration of the securities often varies significantly from the stated maturity, the Board has interpreted rule G-15(a) not to require a statement of yield for transactions in municipal CMOs. A dealer that decides to voluntarily include a statement of "yield" on a confirmation for these securities must also disclose on the confirmation the method by which yield was computed. This will help to avoid the possibility of the customer misunderstanding the yield figure if he should use it to compare the merits of alternative investments.

The Board will be monitoring municipal CMOs and will adopt specific rules for the instruments in the future if this appears to be necessary.

[1] Of course, whether any instrument is a municipal security is a matter to be determined by the Securities and Exchange Commission.

[2] In addition, as noted above, the interest paid on these instruments may be subject to federal taxation. If the securities are identified by the issuer or sold by the underwriter as subject to federal taxation, rules G-12(c) and G-15(a) require confirmations to contain a designation to that effect.

[*] [Currently codified at rule G-15(a)(i)(A)(5)]

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