SEC Requests Comments on Proposed MSRB Modernization of Pricing Formula for Municipal Securities (Fed. Reg.)

The SEC solicited comments on an MSRB-proposed amendment to modernize the mathematical formula that calculates the dollar price of interest-bearing municipal securities with periodic interest payments (e.g., daily, monthly, quarterly or annually) that have more than six months to redemption.

The amendment would eliminate the presumption in the calculation that interest is paid on a semiannual basis. The amended pricing formula, which was deemed "non-controversial" by the MSRB, became effective when it was filed.

The compliance date for the amended pricing formula will be July 18, 2016, but dealers may come into compliance beforehand without being deemed to have violated the existing rule.

Comments on the proposed MSRB amendment must be submitted by April 4, 2016.