MSRB Inter-Dealer Settlement: Uniform Practice for Municipal Securities

What this video covers

• Which rule applies when: the Municipal Securities Rulemaking Board (MSRB) inter-dealer settlement rule for broker-to-broker activity, and the MSRB customer confirmation rule for broker-to-customer activity
• Why capacity disclosure belongs strictly on the customer confirmation, not the inter-dealer confirmation, and why the exam loves this trap
• The specific data elements required on an inter-dealer confirmation: par value, security description, Committee on Uniform Security Identification Procedures (CUSIP) number, trade date, settlement date, yield, dollar price, and delivery instructions
• How modern inter-dealer clearing works: submission to the National Securities Clearing Corporation (NSCC) for automated comparison, then book-entry settlement at the Depository Trust Company (DTC)
• What the DK (don't know) process is, and when a supervisor like Sam invokes it to reject a trade comparison the firm does not recognize
• Why Series 6 reps spend nearly all their time in the customer confirmation rule book: 529 plan interests, Achieving a Better Life Experience (ABLE) accounts, and Local Government Investment Pools (LGIPs) are typically non-transferable on the secondary market
• Why municipal securities settle T+1 even though they are exempt from the standard-settlement-cycle rule that governs corporate securities, and how separate MSRB standards enforce that alignment regardless