Early Order Period

The State is committed to making bonds available to individuals on a first priority basis through an early order period known as the Retail Order Period ("ROP").

What is the Process?

The ROP for state bond and note sales typically occurs during the two days before the official bond or note pricing.

  • Through the end of the ROP, investors can submit orders through their broker. Bonds and notes cannot be purchased directly from the State.
  • Brokers submit investors’ orders for bonds or notes in specific amounts and maturity dates based on approximate interest rates.
  • Once the bond or note sale is completed, usually the day after the ROP, interest rates are finalized.
  • Retail investors are notified of the status of their order and the final pricing. (Note: The ability to fill individual orders depends on the amount of bonds or notes available and the amount of orders. While there is no guarantee, individual orders usually are filled.)
  • Investors who order bonds or notes during the ROP have the right to change, or cancel, their order until the order has been confirmed after final pricing.

Individuals should consult their broker to learn about any particular process the firm may have for participating in ROPs for the State’s bond or note sales.

Before placing an order, investors should read the State’s Preliminary Official Statement for the specific bond or note sale.

Who Can Participate?

“Retail investors” are defined to include individuals as well as bank trust departments, investment advisors and money managers acting on behalf of individuals.

  • Individual investors purchasing bonds or notes to hold as an investment may purchase during the ROP. Orders from California residents are given priority over residents from other states.
  • Individuals may place orders directly with a broker, or they may have a bank trust department or investment advisor place the order on their behalf.
  • Generally, orders may not exceed $1 million. Larger orders are subject to prior approval by the State, its financial advisor or the senior managing underwriter.

Advantages to Individual Investors:

Purchasing bonds during the ROP provides advantages to investors:

  • They get to place orders before institutional investors, such as mutual funds or insurance companies.
  • They earn the same return on their investment as other investors who buy bonds or notes with the same maturity date after the early order period.
  • They do not pay the upfront brokerage fee/commission. (Individuals should check with their broker to learn about any other transaction or account maintenance fees the firm may charge.)



Important Note:
This website is not an offer to sell or solicitation of an offer to buy bonds or notes. Bonds or notes may only be purchased through a broker and through an Official Statement.