Reuters: Regulatory News: Ban on 'masking' muni prices to take effect Nov. 1 - MSRB

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Ban on 'masking' muni prices to take effect Nov. 1 - MSRB Sep 24th 2012, 18:06 Sept 24 | Mon Sep 24, 2012 2:06pm EDT Sept 24 (Reuters) - Underwriters in the $3.7 trillion U.S. municipal bond market will be banned from keeping important pricing information on new debt sales from market participants as of Nov. 1, the Municipal Securities Rulemaking Board said on Monday. The MSRB, which proposed the ban in January, said the U.S. Securities and Exchange Commission on Friday approved amendments to a market rule prohibiting dealers from using terms such as "NRO or not reoffered" on muni bond pricings without also including the price or yield for a particular security. The ban applies to any dealer written communications, electronic or otherwise, after the initial award phase of a muni bond sale. The SEC approves and enforces MSRB rules. Some issuers and data vendors in the muni market have pushed regulators for years to end the practice as a way to allow for more transparency of yield and price levels when bond issues are priced in the primary market. The NRO designation is most commonly used in competitive deals in which dealers bid on new debt at a set date and time. Those sales totaled $59.6 billion in 2011, or about 21 percent of the $287.2 billion of munis sold last year, according to Thomson Reuters data.

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