MSRB NOTICE 2005-26 (MAY 17, 2005)

MSRB TO DISCONTINUE "BATCH" CUSTOMER TRANSACTION REPORTING ON JUNE 1, 2005

In January 2005, amendments to Rule G-14, on transaction reporting became effective requiring most transactions in municipal securities to be reported to the MSRB’s Real-Time Transaction Reporting System (RTRS) within fifteen minutes of the time of trade execution.[1]  RTRS trade reporting formats and procedures specify two methods of reporting customer transactions to RTRS by dealers: sending interactive messages through National Securities Clearing Corporation’s (NSCC) Real-Time Trade Matching System (RTTM) or using RTRS Web.[2]

The MSRB has continued to support the former Transaction Reporting System’s “batch” style reporting formats for reporting customer transactions through NSCC, even though dealers using those formats after January 31, 2005 were in violation of Rule G-14.[3]  On June 1, 2005 the MSRB will discontinue support of the “batch” style reporting formats for customer transactions reported through NSCC and customer transactions reported using this method will be rejected.  Dealers that are not using RTRS reporting formats and procedures for reporting customer transactions will need to begin reporting such transactions by interactive messaging through NSCC or via RTRS Web by June 1, 2005. 

Information about RTRS reporting formats and procedures is available on the Transaction Reporting section of the MSRB’s web site, www.msrb.org.  Questions about this notice may be directed to a Transaction Reporting Assistant.

May 17, 2005


[1] See, e.g. MSRB Notice 2004-36, “Notice of Filing of Implementation Plan for Real-Time Transaction Reporting System” (November 17, 2004), at www.msrb.org.

[2] Inter-dealer transaction reporting is accomplished by both the purchasing and selling dealers submitting the trade to NSCC for comparison following NSCC’s procedures, and ensuring that the trade record includes certain additional data required by Rule G-14.  Dealers may submit inter-dealer trade information to NSCC by interactive messaging or through RTTM Web.

[3] On January 10, 2005, the MSRB discontinued the “TRS dial-up facility”, the additional method of reporting customer transactions to the MSRB under the former Transaction Reporting System.