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Contact: Jennifer A. Galloway, Chief Communications Officer
              202-838-1500
              jgalloway@msrb.org

STAGE SET FOR SHORTENED TRADE SETTLEMENT CYCLE FOR MUNICIPAL SECURITIES

Washington, DC – The Municipal Securities Rulemaking Board (MSRB) has received approval from the Securities and Exchange Commission (SEC) to move toward a shortened settlement cycle for municipal securities. The MSRB was the first regulator to advance a rule change proposal in support of an industry-wide initiative to reduce the time between trade execution and settlement of the transaction by one business day.

“The MSRB fully supports the industry’s efforts to expedite the settlement process and enhance market efficiency,” said MSRB Executive Director Lynnette Kelly. “We are pleased to be among the first regulators to prepare for this important initiative. The benefits of moving to T+2 will enhance the overall efficiency of the securities markets, promote financial stability and better align the U.S. securities markets with global markets.”

Provisions related to settlement cycles in MSRB Rules G-12, on uniform practice, and G-15, on confirmation, clearance, settlement, have been unchanged since 1995. The SEC’s approval sets the stage for the MSRB to coordinate with fellow regulators and the industry in order to transition to a shortened settlement cycle.

The Municipal Securities Rulemaking Board (MSRB) was established by Congress in 1975 with the mission to protect investors, issuers and the public interest and to promote efficiency, competition and capital formation. MSRB is a private, self-regulatory organization governed by an independent board of directors with market knowledge and expertise. MSRB does not receive federal appropriations and is funded primarily through fees paid by regulated entities. MSRB is overseen by Congress and the Securities and Exchange Commission.

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