SIFMA provides comments to the Securities and Exchange Commission (SEC) in response to the Municipal Securities Rulemaking Board (MSRB) proposal to update MSRB requirements for procedures for municipal securities dealers related to the close-out of open inter-dealer fail transactions. SIFMA and its members support the MSRB’s proposed amendments to the close-out procedures, however, doesn’t believe the amendments go far enough to resolve aged municipal fails. SIFMA urges the MSRB to shorten the proposed mandatory close-out deadline in the amendments for new failed transactions to no later than 10 calendar days after settlement, with an exception that would permit the broker dealer failing to deliver at most another 10 days, with consent of the buyer, for an aggregate total of 20 days. 

See also:
MSRB Rule G-12