To encourage the timely review of orders and proposed allocations, the MSRB has imposed the following timelines by which managing underwriters must keep their syndicate members informed.
• Within 24 hours of sending the commitment wire. The syndicate manager must complete the allocation of securities, assuming that the manager has already signed a bond purchase agreement or been awarded the bid (date of sale).
• Within two business days following the date of sale. The syndicate manager must disclose in writing to the other members of the syndicate all allocations having priority over the members’ takedown orders. The summary must indicate the priority category, the aggregate par value, and the maturity date and price of each maturity. These allocations will apply to orders submitted throughout the order period (or if the syndicate does not have an order period, through the first business day following the date of sale).
• Within 10 business days following the date of sale. The syndicate manager must disclose in writing to the other members of the syndicate all available information on designated orders paid to the syndicate and selling group members, in dollar amounts.
Issuers will occasionally “set aside” or hold back a portion of the takedown and direct it to syndicate members at its own discretion. Once a syndicate manager has been informed of such an event, it has until the later of 15 business days following the date of sale or 3 business days following notification of the “set-aside” to disclose in writing to the other members of the syndicate the amount of the takedown that the issuer has directed to each member.
