SEC approves BDA-supported change to shorten corporate syndicate settlements

We are pleased to inform you that the SEC announced yesterday that they have approved FINRA’s proposal to shorten the syndicate settlement time for corporate bond underwritings. This approval successfully culminates three years of BDA advocacy around this issue.

The FINRA change approved by the SEC yesterday amends FINRA Rule 11880, Settlement of Syndicate Accounts. The Rule currently allows bookrunning managers on corporate bond underwritings 90 days after deal closing to close syndicate accounts and pay revenue to syndicate members. Under the change approved by the SEC, bookrunners will be required to pay out 70 percent of gross syndicate revenue within 30 days of deal closing and the remainder net of syndicate expenses within 90 days. This change will benefit any firm who serves as comanager on corporate underwritings.

FINRA had previously announced that upon approval by the SEC of the 11880 changes, FINRA will issue a Regulatory Notice establishing January 1, 2023 as the effective date of the change. We expect that Notice to be released soon.

Thank you to all who contributed to this successful effort. The SEC’s approval announcement is available here. Please call or write if you have any questions.

We hope this information is valuable. Please contact Michael Decker at the BDA if you have any questions at

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