MSRB NOTICE 2012-60 (NOVEMBER 29, 2012)

MSRB EXTENDS IMPLEMENTATION DATE OF INTER-DEALER REGULATORY DOLLAR PRICE REPORTING REQUIREMENT

The Municipal Securities Rulemaking Board (“MSRB”) is updating dealers on the status of a new requirement for brokers, dealers and municipal securities dealers (collectively “dealers”) to report for inter-dealer transactions the contractual dollar price at which the transaction was executed.  The MSRB will announce the new implementation date in a notice published on the MSRB website at least 10 business days in advance of the new implementation date, which shall be no later than March 29, 2013.[1]  

BACKGROUND

Inter-dealer transaction reporting is accomplished by both the purchasing and selling dealers submitting information about the transaction to the Depository Trust and Clearing Corporation’s (“DTCC”) Real-Time Trade Matching System (“RTTM”).  Information submitted to RTTM is forwarded to the MSRB’s Real-time Transaction Reporting System (“RTRS”). The SEC previously approved the MSRB rule change to require dealers to report for inter-dealer transactions the contractual dollar price at which the transaction was executed, in addition to the information currently reported. The change will provide RTRS with an additional data point to use in its evaluation of which dollar price should be disseminated from RTRS for price transparency purposes.  This requirement was scheduled to become effective on November 5, 2012 but was postponed due to the effects of Hurricane Sandy on DTCC’s systems.[2]

Due to ongoing DTCC systems disruptions caused by Hurricane Sandy, the MSRB has extended the implementation date of this dealer reporting requirement to a date not later than March 29, 2013.  MSRB will work with DTCC to implement this change as soon as practicable and will provide at least 10 business days of advance notice of the implementation date. 

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Questions about this notice may be directed to Justin R. Pica, Director, Product Management - Market Transparency at 703-797-6716.

November 29, 2012


[1]  File No. SR-MSRB-2012-10.  Comments on the proposed rule change should be submitted to the SEC and should reference this file number.