REMINDER: Proposed Rule G-40 Not Yet Approved by SEC

It has come to the MSRB’s attention that many dealers mistakenly believe that proposed Rule G-40, on electronic mail contacts, is currently in effect.  This is not the case.  The MSRB filed the proposed rule with the SEC on April 30, 2002, and published notice of this filing on its web site (www.msrb.org).  The SEC will publish notice of this filing and seek comment on the proposed rule.[1]  If and when the SEC approves the new rule, the MSRB will issue a press release and publish a notice on its web site alerting dealers to such approval and advising them of their new obligations under the rule (the rule would become operative 90 days after the SEC’s approval date).  At such time, the MSRB will send to its current list of dealers a copy of Form G-40 with instructions for submitting the form.  PLEASE DO NOT SUBMIT FORMS TO THE MSRB UNTIL YOU RECEIVE A LETTER REQUESTING YOU TO DO SO. 

If approved by the SEC, the rule would require each broker, dealer and municipal securities dealer to use new Form G-40 to appoint an Electronic Mail Contact to serve as the official contact person for purposes of electronic communication between the dealer and the MSRB.

For a complete description of proposed Rule G-40, visit the MSRB’s web site at www.msrb.org and click on the “What’s New” category.

May 6, 2002