MSRB Proposes Rules on Electronic Offerings, Trading Systems, and Recordkeeping

Washington, DC, May 7, 2001 - The Municipal Securities Rulemaking Board ("MSRB") has filed with the Securities and Exchange Commission a proposed rule change consisting of interpretations on the application of various MSRB rules to electronic primary offerings through auction procedures, specific electronic trading systems, and electronic recordkeeping.

The interpretations address some, but not all, of the issues raised in the MSRB's request for comment, issued last September, on its draft interpretive guidance on dealer responsibilities in connection with electronic and traditional municipal securities transactions. The proposed rule changes are effective immediately.