On October 17, 2006, the Securities and Exchange
Commission approved the amendments to Rule G-14 RTRS Procedures relating to “list
offering price” and “takedown” transactions.[1]
The rule expands the definition of “list offering price” transactions to
include certain inter-dealer “takedown” transactions and to require the
reporting of these transactions as “list offering price” transactions on the
first day of trading of a new issue. The amendments become effective on January
8, 2007. For a detailed discussion of the amendments, see MSRB Notice
2006-27 (August 15, 2006).
Questions regarding the amendments may be
directed to Karen Caplan, Associate General Counsel.
October 19, 2006
TEXT OF AMENDMENTS[2]
Rule G-14 Reports of Sales or Purchases
(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
fifteen minutes of Time of Trade to an RTRS Portal except in the
following situations:
(A) A “List Offering Price/Takedown
paragraph
(d)(vii) of Rule G-14 RTRS Procedures, shall be reported by the end
of the day on which the trade is executed. [Syndicate
managers, syndicate members and selling group
members that effect trades in new issues on the
first day of trading at the list offering price shall report such trades
by the end of the day on which the trades were executed.]
(B) – (C) No change.
(iii) – (vi) No change.
(b) Reporting Requirements for Specific Types of
Transactions.
(i) – (iii) No change.
(iv) Transactions with Special
Conditions. Reports of transactions affected by the special
conditions described in the RTRS Users Manual in Section 4.3.2
of the Specifications for Real-Time Reporting of Municipal Securities Transactions
shall be reported with the “special condition indicators” shown and in
the manner specified. Special condition indicators designated as
“optional” in these Specifications are required for the
Submitter to obtain an extended reporting deadline under paragraphs
(a)(ii)(B)-(C) of Rule G-14 RTRS Procedures, but may be omitted
if a deadline extension is not claimed. All other special condition indicators
are mandatory, including the List Offering Price/Takedown Transaction indicator
for transactions identified in paragraph (a)(ii)(A) of Rule G-14 RTRS Procedures.
(c) No Change.
(d) Definitions.
(i) - (vi) No change.
(vii) “List Offering Price/Takedown
Transaction” means a primary market sale transaction executed on
the first day of trading of a new issue:
(A) by a sole underwriter,
syndicate manager, syndicate memberor
selling group member at the published list offering price for the security(“List
Offering Price Transaction”); or
(B) by a sole underwriter or
syndicate manager to a syndicate or selling
group member at a discount from the published list offering price for
the security (“RTRS Takedown Transaction”).
