The Municipal Securities Rulemaking Board (MSRB) filed with the Securities and Exchange Commission (SEC) on November 8 an amendment to its proposed changes to MSRB Rule G-34, on obtaining CUSIP numbers. The amendment modifies the principles-based exception for certain sales of municipal securities.
“SIFMA is pleased the MSRB has submitted Amendment No. 1 to its proposed rule change to MSRB Rule G-34. The expansion of the exception, which now includes certain intergovernmental purchases of securities– clarifies that these securities that are never intended to be traded in the secondary market do not need to incur the expense of obtaining a CUSIP number,” said Leslie Norwood, a managing director and co-head of SIFMA’s municipal division. “We also appreciate the clarifying language with respect to the intent of the purchasing entity, although we believe the MSRB should have also eliminated the time frame with respect to the purchaser’s intent.”