MSRB NOTICE 2005-62 (DECEMBER 22, 2005)

SEC APPROVES PROPOSED RULE CHANGE TO MSRB RULE G-14 RTRS PROCEDURES, PARAGRAPH (A)(II)(C) TO EXTEND THE EXPIRATION DATE OF THE THREE-HOUR EXCEPTION

On December 16, 2005, the Securities and Exchange Commission approved the proposed rule change to Rule G-14 RTRS Procedures, paragraph (a)(ii)(C) to extend the expiration date of the three-hour exception to the 15-minute reporting deadline.[1]  

SUMMARY OF RULE CHANGE

The rule change extends the three-hour exception to the 15-minute reporting deadline under MSRB Rule G-14.  The three-hour exception was scheduled to expire on January 31, 2006.  The rule as amended extends the expiration date of the three-hour exception to December 31, 2007 for when, as and if issued transactions, and to December 29, 2006 for all other transactions.[2]

TEXT OF AMENDED RULE

Rule G-14 Reports of Sales or Purchases [3]

        (a)- (b)  No change.

        Rule G-14 RTRS Procedures

        (a) General Procedures. 

(i)  No change.

(ii)  Transactions effected with a Time of Trade during the hours of the RTRS Business Day shall be reported within 15 minutes of Time of Trade to an RTRS Portal except in the following situations:

(A)  No change.

(B)  No change.

(C)  A dealer shall report a trade within three hours of the Time of Trade if all the following conditions apply: (1) the CUSIP number and indicative data of the issue traded are not in the securities master file used by the dealer to process trades for confirmations, clearance, and settlement; (2) the dealer has not traded the issue in the previous year; and (3) the dealer is not a syndicate manager or syndicate member for the issue.  If fewer than three hours of the RTRS Business Day remain after the Time of Trade, the trade shall be reported no later than 15 minutes after the beginning of the next RTRS Business Day.  This provision (C) will cease to be effective [one year after the Announced RTRS Start-Up Date.] on December 31, 2007 for when, as and if issued transactions and December 29, 2006 for all other transactions. 

(iii) – (vi)  No change.

        (b)-(d) No change.

December 22, 2005


[1] Exchange Act Release No. 34-52967 (December 16, 2005).

[2] For a more detailed discussion of the proposed rule change, See MSRB Notice 2005-60 (December 13, 2005).

[3] Underlining indicates new language; brackets indicate deletions.