MSRB NOTICE 2007-39 (December 20, 2007)

NEW RTRS ERROR MESSAGE AND CHANGES TO EXISTING RTRS ERROR MESSAGES

This notice was updated on December 20, 2007 to correct a reference to IDRO transactions receiving U55F error codes.

Beginning January 2, 2008, the MSRB will make several changes to the error code feedback provided to dealers in response to certain trade reports submitted to the MSRB’s Real-Time Transaction Reporting System (“RTRS”).  Dealers are required by Rule G-14 to review trade status information from RTRS and to correct errors in RTRS submissions as soon as possible.  To provide information about incorrect or potentially incorrect input, RTRS returns error codes to the dealer when it finds errors or questionable conditions in submissions.  As a reminder, a transaction that receives an unsatisfactory error message is considered unsatisfactory for regulatory reporting, and corrective action must be taken immediately.  A transaction that receives a questionable error message must be reviewed, and any erroneous or missing data must be corrected immediately. [1]   

Error Codes Related to the Upcoming Changes to the Special Condition Indicators

On January 2, 2008, two new special condition indicators for use on inter-dealer transactions will be implemented in RTRS. [2] 

• The “Resubmission of an RTTM Cancel” special condition indicator (“Mc50”) is to be used when an uncompared inter-dealer transaction is cancelled by RTTM as a result of the contra-party submitting incorrect information or failing to submit.  The dealer that originally submitted correct information to RTTM may use this indicator when resubmitting to avoid being scored late; however, the dealer may only use this indicator if it resubmits identical information about the transaction by the end of the next business day after RTTM cancels the transaction. 
• The “Inter-dealer Ineligible on Trade Date” special condition indicator (“Mc40”) is to be used on inter-dealer transactions that cannot be submitted to RTTM on trade date or with the accurate trade date either because all information necessary for comparison is not available or because the trade date is not a “valid” trade date in RTTM. 

In connection with these new special condition indicators, the following error codes will be returned to dealers as described below.

U55F – Special Condition Indicator Inconsistent with Trade Details

The new Mc40 and Mc50 special condition indicators discussed above are available for inter-dealer transactions only.  When a customer or IDRO transaction is reported with a Mc40 or Mc50 special condition indicator, RTRS will return a new unsatisfactory error code U55F – “Special Condition Indicator Inconsistent with Trade Details.”  As explained above, corrective action must be taken immediately on all transactions that receive unsatisfactory error codes.    

Q55F – Special Condition Indicator Inconsistent with Trade History

RTRS will begin returning the questionable error code Q55F – “Special Condition Indicator Inconsistent with Trade History” when a transaction is submitted with the Mc50 special condition indicator, but RTRS cannot locate a cancelled inter-dealer transaction that contains trade information that is identical to the information included in the transaction reported with the Mc50 indicator.  Previously, this error code was sent only on transactions that incorrectly included the three-hour exception special condition indicator (“Mc10”).  As explained above, all transactions with questionable error codes must be promptly reviewed and corrected if necessary. 

Other Amended Error Code

Q44B - Contra Dealer Symbol Missing

The MSRB reminds dealers that, pursuant to Rule G-14(b)(2), the contra-party in each inter-dealer transaction reported to the Real-time Transaction Reporting System (RTRS) must be correctly identified.  The dealer reporting an inter-dealer transaction must ensure that the four-letter Executing Broker Symbol (“EBS”) is included in the appropriate field to identify the contra-party.[3] 

To assist dealers in reporting transactions correctly, RTRS will begin returning the questionable error code Q44B – “Contra Dealer Symbol Missing” when there is no contra-party EBS in an inter-dealer transaction report.  Previously, this error code was sent only on IDRO transactions.

Note that all inter-dealer transactions reported with no contra-party EBS are incomplete and therefore not in compliance with Rule G-14.  The new message is being added to aid dealers in identifying and correcting submissions without a contra-party EBS.

Questions about this notice may be directed to Sara K. Pranio at (703)797-6600 or to a Transaction Reporting Assistant at (703) 797-6668.

December 20, 2007

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