Effective November 1, 2012, the MSRB will prohibit broker-dealers from using the designation “not reoffered” or “NRO” in written communications about new issues of municipal securities, unless the broker-dealers include price or yield information on the securities. This rule applies to any written communication sent at or after the time a municipal issuer accepts an underwriter’s terms for a new issue.
The designation “NRO” or “not reoffered” means that certain maturities of a new issue of municipal securities are not available to be reoffered to potential investors. This occurs when the maturities are fully subscribed for or sold prior to the general reoffering of the issue.
Sources:
MSRB Receives Approval to Improve Price Transparency for “Not Reoffered” Municipal Securities
Glossary of Municipal Securities Terms
This alert applies to the Series 7.