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      <h1>Muni Price Reporting (TRS)</h1>
      <h2>MSRB Speaks on Transaction Reporting</h2>
      <h3 class="current"><a name="top"></a>User's Manual for Customer Transaction 
        Reporting<br />
      </h3>
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          <option SELECTED>TABLE OF CONTENTS</option>
          <option>-------------------------------------</option>
          <option value="usr-man-1.asp">Introduction</option>
          <option value="usr-man-2.asp">Preparing to Submit Customer Trade Data</option>
          <option value="usr-man-3.asp">File Submission Methods</option>
          <option value="usr-man-4.asp">Reporting Customer Trades</option>
          <option value="usr-man-5.asp">Guidelines for Operations</option>
          <option value="usr-man-appx.asp">Appendixes</option>
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      <h4><strong>Reporting Customer Trades</strong></h4>
      <p>This section describes how to report customer trades. It first discusses 
        each of the required data elements. (Formal definitions are in <a href="usr-man-appx.htm">Appendix 
        D</a>.) Next, there is a discussion of how to report some specific types 
        of trades: &quot;when-issued&quot; trades and trades in securities that 
        do not pay a fixed rate of interest.</p>
      <p> </p>
      <h5>Data Elements</h5>
      <p>Except where noted, all these data elements must be reported for each 
        trade.</p>
      <h6>CUSIP Number</h6>
      <p>Report the nine-character CUSIP number of the security being traded, 
        e.g., 123456AB9. </p>
      <p>Only CUSIP numbers assigned by the CUSIP Service Bureau of Standard &amp; 
        Poor's may be reported to CTRS. Do not report security numbers assigned 
        by a dealer or by an information service. </p>
      <p>Do not report trades in securities other than municipal securities, such 
        as tax-free mutual funds. If you do, you will have to cancel these trades 
        later. </p>
      <h6>Buy/Sell Indicator</h6>
      <p>Report the trade as a &quot;buy&quot; if you are reporting the purchase 
        of a security from a customer. Report &quot;sell&quot; if you are reporting 
        a sale to a customer. </p>
      <p>NOTE: The CTRS convention regarding &quot;buy&quot; and &quot;sell&quot; 
        may differ from the convention used on your firm's customer confirmations.</p>
      <h6>Par</h6>
      <p>Report the par value (quantity) of securities traded. You must report 
        the par value in dollars (for example, a trade of &quot;15 bonds&quot; 
        is reported as 15000). </p>
      <p>If the transaction is in zero coupon securities, report the maturity 
        value of the securities. </p>
      <p>For nearly every trade, the par value will be an exact multiple of one 
        thousand dollars. If you report a par value that is not a multiple of 
        $1,000, the system will send you an error message questioning your input. 
        This is intended to ensure against accidentally entering the number of 
        bonds traded (e.g., $50), when the actual par amount in dollars should 
        be entered (e.g., $50,000).</p>
      <p>You may then correct the par if it was inaccurately reported, but if 
        the trade was, in fact, for a value not a multiple of $1,000, you do not 
        need to take action. The same procedure applies for transactions whose 
        par value is less than $1,000. </p>
      <h6>Dollar price (required except in certain &quot;when-issued&quot; trades)</h6>
      <p>Report the price at which the trade was effected. The units are dollars 
        per hundred dollars par value. </p>
      <p>If the dollar price is not required to be reported for a when-issued 
        trade (see below), leave the field blank or report &quot;0.0&quot;.</p>
      <p>Do not include the effect of any commission in the dollar price value. 
        You will report commission later, in the same units as the dollar price.</p>
      <h6>Yield (required except in certain trades)</h6>
      <p>Report the yield at which the trade was effected, in per cent. </p>
      <p>The yield value reported is the same &quot;net&quot; yield that is reported 
        on customer confirmations. Therefore, it should include the effect of 
        any commission (see MSRB rule G-15(a)). Rule G-15(a) in most cases requires 
        the yield to be computed to the lower of call or nominal maturity date. 
      </p>
      <p>If the transaction was effected at par, the yield (usually, the coupon 
        rate) should be reported to the MSRB, even though rule G-15(a) allows 
        the yield to be omitted from the confirmation in such a case.</p>
      <p>If a yield cannot not be computed for a transaction done on a dollar 
        price basis - for example, because the trade is in a variable rate security 
        or in a defaulted security - then the yield may be omitted (left blank 
        or reported as zero).(2) </p>
      <p>If reporting the yield is not possible because the transaction was done 
        on a dollar price basis and no settlement date has been set for a &quot;when-issued&quot; 
        security (see below), leave the yield blank or report it as zero.</p>
      <h6>Commission (a value must be entered for agency trades)</h6>
      <p>Report the commission in the same units as the dollar price, i.e., in 
        dollars and cents per hundred dollars par value. Do not report the total 
        amount of commission, e.g., $50.00. Instead, report it so that the TRS 
        system can add together the dollar price and commission to compute the 
        net dollar price, e.g., report a commission of $ .25 plus a dollar price 
        of $99.50 giving net price of $99.75.</p>
      <p>If the trade was effected on an agency basis, report the commission, 
        even if it is zero. If the trade was a principal trade, leave the commission 
        blank or report it as zero. You may not report a commission (except zero) 
        for a principal trade.</p>
      <h6>Time of trade</h6>
      <p>Report the time at which the trade was executed, in hours and minutes. 
        Use the military convention, for example, 2:00 pm is 1400 hours (entered 
        as 1400). Report the time as Eastern time.</p>
      <p>Do not report the time the data was entered into your computer system 
        or another system. Instead, be sure to report the actual time the trade 
        was done, that is, the time the dealer and customer formed a contract 
        to trade.</p>
      <h6>Trade date</h6>
      <p>Report the trade date. If the trade date of the transaction differs from 
        the current date, report the date on which the trade was executed. Do 
        not automatically report the current date or the system processing date. 
        When amending a trade report, report the actual trade date, not the date 
        of amendment.</p>
      <p>Settlement date (required except in certain when-issued trades)</p>
      <p>Report the date on which the trade will settle. If the settlement date 
        of a when-issued trade is not known, leave this field blank or report 
        it as zero.</p>
      <h6>Dealer</h6>
      <p>This field must contain the NASD-assigned four-letter broker symbol (sometimes 
        termed &quot;executing broker symbol,&quot; &quot;market maker ID,&quot; 
        or &quot;market participant ID&quot;) that identifies the dealer effecting 
        the trade. To be accepted by TRS, this symbol must be assigned by the 
        NASD and must be known to the MSRB. If your firm has not completed and 
        returned a Transaction Reporting Information Form (see above), we will 
        not know your symbol and your trades will be rejected. </p>
      <p>A clearing broker may report trades on behalf of its correspondents that 
        effect trades with customers, but the correspondent must be identified 
        as the dealer on the trade record. It is important to report the symbol 
        that identifies the dealer that effected the trade with the customer (see 
        &quot;Broker Symbol&quot; in Section 2 of this manual). </p>
      <h6>Capacity</h6>
      <p>Report the dealer's capacity with respect to the customer on this trade, 
        i.e., whether the dealer acted as agent for the customer or as principal 
        with respect to the customer. </p>
      <h6>Transaction control number</h6>
      <p>When reporting a trade to the MSRB, you must report a transaction control 
        number. This allows the CTRS to know which records to update if the transaction 
        data changes, or the transaction is canceled, after it is first reported. 
        Each dealer assigns its own transaction control numbers. The format is 
        unrestricted except for a maximum length of 20 characters. </p>
      <p>As described below, you may change (&quot;amend&quot;) or delete (&quot;cancel&quot;) 
        a transaction after you report it. The first record of a transaction and 
        subsequent &quot;amend&quot; records must all include the same transaction 
        control number (you have a choice of two fields in which to enter this 
        number, as also described below). A &quot;cancel&quot; record for this 
        transaction must also have the same number. Canceling a transaction serves 
        to cancel its control number, so you may re-use the control number on 
        another transaction if you wish. However, if you do not cancel a transaction, 
        you may not re-use the control number to report another trade until three 
        years have passed. This ensures that the system does not have two different 
        transactions from a given dealer with the same control number. </p>
      <h6>Previous reference (optional)</h6>
      <p>If you are reporting a change to a transaction C that is, if you submit 
        an Amend, Cancel, or Verify record C you must include the transaction 
        control number with which the transaction was first reported (the &quot;original&quot; 
        control number). There are two alternative ways to do this: </p>
      <p>You may put the original control number in the Transaction Control Number 
        field, and leave the Previous Reference field blank. This is the simpler 
        way and is recommended. <br>
        You may report a new control number (one that your firm has not used during 
        the previous three years) in the Transaction Control Number field, and 
        put the original control number in the Previous Reference field. You might 
        wish to do this if, for example, your firm's record-keeping system requires 
        a unique number for every transaction record. <br>
        As noted, if you (1) report the trade (using an &quot;F&quot; record), 
        then (2) Amend the trade, then (3) Amend the trade again, or Cancel the 
        trade, then you must provide the same transaction control number on all 
        of these records - either in the Transaction Control Number or the Previous 
        Reference field.</p>
      <h6>Cancel/amend code </h6>
      <p>The cancel/amend code (also known as &quot;transaction type&quot;) indicates 
        whether a trade record describes a trade that is being reported for the 
        first time or whether it refers to a previously reported trade. </p>
      <p>The first time you report a trade to TRS, the trade record must have 
        &quot;F&quot; as its cancel/amend code, indicating that this is the first 
        report of the trade. If you determine there was an error in the &quot;F&quot; 
        record, you should report the correct data in an &quot;A&quot; (amend) 
        record. TRS replaces the original data with the data in the &quot;A&quot; 
        record. If you wish to cancel (delete) the &quot;F&quot; record's data 
        - because there was no reportable trade or because you wish to replace 
        the &quot;F&quot; record with another &quot;F&quot; record - you should 
        report the trade with a &quot;C&quot; record. Finally, if you receive 
        a &quot;QUESTION RECORD&quot; error message from TRS and determine that 
        the data in question is correct, you may submit a &quot;V&quot; record 
        to verify the original data. See Appendix F for more information on amending, 
        canceling or verifying trades; see <a href="usr-man-appx.htm">Appendix 
        J</a> for more on error messages.</p>
      <h5>&quot;When-Issued&quot; Trades</h5>
      <p>Sometimes customer trades are done in securities that are in &quot;when-issued&quot; 
        or &quot;new issue&quot; status before the first settlement date is determined. 
        In this case, you must report either the trade's dollar price or the yield 
        to CTRS, but may omit the other parameter (since settlement date is needed 
        to calculate price from yield, or yield from price). Simply report the 
        price or yield, depending whether the trade was done on the basis of price 
        or of yield.</p>
      <p>When the initial settlement date is determined, you do not need to submit 
        an Amend record to report the dollar price or yield to the MSRB if you 
        have already reported the trade accurately in other respects.</p>
      <p>Note that when the trade is initially reported, if the settlement date 
        is known, you must report both the price and the yield for a when-issued 
        trade. The only exception is described in the next paragraph.</p>
      <h5>Trades in Non-Fixed-Rate Securities</h5>
      <p>If a municipal security does not have a fixed rate of interest, report 
        the yield as blank or zero. Examples of such securities are variable rate 
        securities, collateralized mortgage obligations, and securities that prepay 
        principal. You should also report the yield as blank or zero for trades 
        in defaulted securities and in securities traded on a discounted basis.</p>
      <h5>Errors and How to Fix Them</h5>
      <p>TRS produces a receipt file for every customer transaction file it receives. 
        The purpose of the receipt file is to acknowledge that your file was received 
        and to list any errors or apparent errors that the host detected. The 
        PC TRS User's Manual, Section 4 (see Appendix F) describes transaction 
        reporting errors and gives guidelines about how to fix them by amending, 
        canceling or verifying the data reported to the MSRB. </p>
      <p>You must respond to certain types of error messages.</p>
      <ul>
        <li>Messages that include the words &quot;amend (or cancel and resubmit)&quot; 
          indicate that the trade record was unacceptable to the TRS, usually 
          because it is formatted incorrectly. You must amend the erroneous record, 
          or cancel it and replace it with a correct record. </li>
        <li>Messages that include the words &quot;header error&quot; indicate 
          that the file header is unacceptable and that you must resubmit the 
          file with a corrected header. </li>
        <li>Messages that include the words &quot;record ignored&quot; usually 
          indicate that the record was ignored for the purpose of storage in the 
          MSRB database and that you must correct the data and resubmit it. There 
          are a few exceptions to the requirement to resubmit these trades, as 
          stated in Appendix J.</li>
      </ul>
      <p>For a detailed list of error codes and the action you must take in regard 
        to each error, see the notice about &quot;New Error Messages&quot; in 
        Appendix J. Refer to the MSRB Web site for possible updates to this printed 
        list.</p>
      <h5>Further Information on Data Elements</h5>
      <p>Further information on the data elements required for customer transaction 
        reporting may be found in MSRB Reports notices and the June 1998 &quot;Questions 
        and Answers&quot; document (both on the MSRB Web site) as follows:</p>
      <p><b>Broker symbol</b><br>
        MSRB Reports, Vol. 15, No. 3 (October 1995) at 35-37<br>
        MSRB Reports, Vol. 17, No. 1 (January 1997) at 9<br>
        Q&amp;A nos. 69-75</p>
      <p><b>Time-of-trade</b><br>
        MSRB Reports, Vol. 16, No. 2 (June 1996) at 7-8<br>
        MSRB Reports, Vol. 16, No. 3 (September 1994) at 17-18<br>
        Q&amp;A nos. 30-31</p>
      <p><b>Price and yield</b><br>
        Q&amp;A nos. 17-20</p>
      <p><b>Settlement date</b>: <br>
        Q&amp;A nos. 21-23.</p>
      <p><b>Capacity as agent/principal</b><br>
        Q&amp;A nos. 24-26</p>
      <p><b>Transaction control number</b><br>
        Q&amp;A no. 28</p>
      <p><b>Cancel/amend code</b><br>
        Q&amp;A nos. 34-46</p>
  
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