MSRB seeks approval of rule change for transparency of NRO securities

By Jennifer Chiou

New York, June 28 - The Municipal Securities Rulemaking Board announced that it is looking for approval for a proposed rule change to limit the use by municipal securities dealers of the designation "not reoffered" or "NRO" without the inclusion of price or yield information in written communications about new issues of securities.

According to an MSRB notice, the proposed rule change would improve the availability of current information about initial offering prices or yields of the new issues.

The "NRO" designation indicates that certain maturities of a new issue of municipal securities are not available to be reoffered to potential investors.

The proposed rule change, which was filed with the Securities and Exchange Commission, would amend MSRB Rule G-34 on new issues and market information requirements.

The notice stated that this new requirement would apply to any written communication sent at or after the time a new issue of municipal securities is first awarded to the underwriters.

"The proposed rule change will help provide timely and full price discovery for state and local governments interested in ensuring that their bonds are offered at competitive prices or yields, as well as for investors and other market participants seeking more contemporaneous price information," MSRB executive director Lynnette Kelly said in the notice.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.