MSRB NOTICE 2008-27 (June 13, 2008)

REMINDER OF UPCOMING SUNSET OF THE THREE HOUR EXCEPTION

The MSRB reminds dealers that on June 30, 2008, the three-hour exception from fifteen-minute transaction reporting will sunset for all transactions.  The exemption that will expire from paragraph (a)(ii)(C) of the Rule G-14 RTRS Procedures currently allows a dealer three hours to report trades in when, as and if issued securities (the “three-hour exception”) if the dealer: (i) does not have the CUSIP number and indicative data of the issue traded in the securities master file used by the dealer to process trades for confirmation, clearance and settlement; (ii) has not traded the security in the previous year; and (iii) did not act as a syndicate manager or syndicate member for the issue.  Dealers attempting to claim the three-hour exception from fifteen-minute transaction reporting on any transaction after June 30, 2008, will receive a questionable error code, Q55D - “Invalid Special Condition Indicator,” and will be in violation of Rule G-14. 

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

June 13, 2008