MSRB NOTICE 2006-34 (DECEMBER 5, 2006)

Notice Concerning Changes to the Comparison Eligibility of Certain Inter-dealer Transactions: Rules G-12(f) and G-14

MSRB Rule G-12(f), on automated comparison of inter-dealer transactions, requires dealers to submit all transactions eligible for automated comparison to National Securities Clearing Corporation (NSCC) for comparison.  Additionally, all inter-dealer transactions eligible for trade comparison must be reported to the MSRB’s Real-Time Transaction Reporting System (RTRS) under MSRB Rule G-14[1]. 

On January 26, 2007, enhancements to NSCC’s comparison system for municipal securities will expand the definition of inter-dealer transactions eligible for comparison[2], and thus will expand the definition of inter-dealer transactions that must submitted for comparison under Rule G-12(f) and be reported to RTRS under Rule G-14.  The MSRB believes that these enhancements will affect a small number of transactions, and should not greatly affect trade reporting.

Accrued Interest Expansion

Transactions with accrued interest up to $9,999,999.99 will be eligible for comparison.  Currently, transactions with accrued interest up to $999,999.99 are eligible for comparison. 

Quantities not Divisible by 1,000

Transactions in whole dollar amounts less than $1,000 will be accepted by the RTTM system.  Additionally, transactions over $1,000 that are not divisible by 1,000 will be compared by submitting two transactions.  For example, a transaction of 10,500 will be submitted as one transaction of 10,000 and one transaction of 500.  A submission of 10,500 will continue to be rejected[3]. 

Questions about this notice may be directed to Sara Pranio, Uniform Practice Assistant, or to Justin Pica, Uniform Practice Policy Advisor.

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