The MSRB announced plans earlier this month to amend MSRB rules that would govern the responsibilities of dealers in the conduct of retail order periods.  As proposed, the rule would seek to address concerns regarding dealers’ disregard of terms and conditions established by issuers of municipal securities in connection with bond sales, among other practices.  The MSRB is looking for comments - on or before 4/13/12. According to MSRB Executive Director Lynnette Kelly, "These proposed rules would provide additional protections to ensure that issuers’ requests are honored and help retail investors achieve fair pricing for their bonds." The MSRB is proposing rule amendments and a related interpretation as part of its mandate to protect municipal entities and investors, and because retail order periods have become prevalent.  State and local governments often wish to designate that a specific amount or specific maturities of new bonds be placed with retail investors. What is Being Proposed. The proposed changes would make clear it that it is the responsibility of a muni securities issuer to define what it means by “retail investors,” since definitions vary.  They also would require a syndicate manager to provide all members of a syndicate and any selling group members with a written statement of the issuer’s terms and conditions, including any retail order period requirements, the priority provisions, and any subsequent changes. Dealers placing orders for securities during a retail order period would be required to provide written documentation of whether the order met the issuer’s definition of retail, among other requirements.  An underwriter also would be required to report to MSRB’s EMMA system whether a primary offering of securities included a retail order period and when the retail order period was conducted. Concern for Recent Disregard. Over the last 2 years, the MSRB has been concerned about disregard by certain dealers of terms and conditions required by issuers for retail order periods, the failure of syndicate managers to disseminate timely notice of issuer terms and conditions regarding retail order periods to all dealers, and whether retail order periods result in fair pricing to retail investors.  Enforcement agencies have also requested that the MSRB adopt additional recordkeeping requirements concerning retail order periods to assist in the enforcement of MSRB rules, which today’s proposal also addresses. For further details, go to:  [MSRB News Release, 3/6/12] and [MSRB Notice 12-13, 3/6].