MSRB NOTICE 2013-05 (FEBRUARY 12, 2013)

MSRB UPDATES ELECTRONIC FORM FOR REPORTING TRADES

The Municipal Securities Rulemaking Board (“MSRB”) has updated the electronic form required in connection with reporting transactions in municipal securities to the MSRB’s Real-Time Transaction Reporting System (“RTRS”).[1]  Implementation date for use of revised Form RTRS will be April 15, 2013.  On and after that date, brokers, dealers and municipal securities dealers (“dealers”) submitting new information or changes to previously submitted information will be required to use revised Form RTRS.

No action is required for dealers that are not submitting new information or changes.  Data contained within existing Form RTRS submissions will be migrated to the revised form by the MSRB.[2]

BACKGROUND

MSRB Rule G-14 RTRS Procedures and Rule G-12 currently require dealers to report transactions in municipal securities within 15 minutes of the time of trade execution, and to submit inter-dealer transactions to a central comparison system within the same time frame.  Form RTRS is used to provide certain basic data necessary to ensure that dealers’ trade reports can be processed accurately.[3]  Current Form RTRS includes elements that are outdated and does not allow users to take full advantage of MSRB’s user account management functions.

REVISED FORM RTRS

Revised Form RTRS, which replaces in its entirety current Form RTRS, requires dealers to provide much of the same information as previously required, but in a format that is easier to use and includes improvements in contextual help and printable output. In addition, revised Form RTRS (i) modifies the account management function for RTRS web users; (ii) revises the handling of identifiers for dealers trading in multiple capacities; (iii) removes elements of the current Form RTRS relating to start-up testing; and (iv) corrects or eliminates minor obsolete elements in current Form RTRS.

With the changes to Form RTRS, management of RTRS Web user accounts will no longer be controlled through Form RTRS and instead will use the existing account management function in the MSRB Gateway[4] system.  The incorporation of RTRS Web account management into the MSRB Gateway system brings that system into conformance with other similar systems, such as SHORT Web and EMMA Dataport.[5]

The changes to Form RTRS do not include any changes to MSRB rules.  Revised Form RTRS is required to be submitted by dealers in electronic form, as is the case with current Form RTRS.

The MSRB anticipates that use of revised Form RTRS will reduce total Form RTRS filings significantly, thereby reducing the regulatory burden on dealers and MSRB operating costs.

The information required by revised Form RTRS, noted below, is much the same as required on current Form RTRS, but in a simplified format and structure:

  • type of business activities engaged in by the dealer; activity as a broker’s broker; and activity as a registered clearing member;
  • identifiers used for reporting purposes (e.g., MPIDs and any participant IDs assigned by the National Securities Clearing Corporation);
  • identity of dealer staff to be contacted for issues concerning quality of trade data submissions and technical problems;
  • method of trade submissions; and identity of other dealers submitting on behalf of the dealer submitting Form RTRS; and
  • designation of the method used to receive and review automated reports indicating trade submission errors. 

USING REVISED FORM RTRS

Dealers can access revised Form RTRS using their Gateway user name and password beginning April 15, 2013.[6]  Revised Form RTRS will include explanatory material to aid users in completing the revised Form, as well as links to other instructional material.

Questions concerning this Notice may be directed to Karl Eiholzer, Director, Product Management Regulatory Services, at 703-797-6600, or Karen Du Brul, Associate General Counsel, at 703-797-6600.

February 12, 2013


[1]  File No. SR-MSRB-2013-03. (Original filing on February 12, 2013 replaced on March 1, 2013).

[2]  Certain dealers may be contacted by MSRB staff to address inconsistencies or deficiencies in the Form RTRS data or to establish user accounts for the MSRB Gateway system.

[3]  MSRB Rule G-14(b)(iv).

[4]  MSRB Gateway is the single, secure access point for all MSRB market transparency submission services, applications and associated forms.  Specific functions users can perform in Gateway include: (1) set up secure, password-protected accounts; (2) manage organization and user account details; (3) access certain forms used for MSRB submission services, such as Form RTRS; and (4) manage agent designations.

[5]  SHORT Web and EMMA Dataport are user interfaces used by dealer staff to submit data and document information pursuant to MSRB Rules G-32 and G-34.

[6]  To access revised Form RTRS, go to www.msrb.org; click “Log-In” to log into Gateway; on the Gateway Main Menu, expand the link “Registrant Information Forms”; click the link “Form RTRS”; and follow the instructions on the Form.