MSRB seeks comments about bolstering price transparency on EMMA site

By Susanna Moon

Chicago, July 31 - The Municipal Securities Rulemaking Board said it is seeking additional public input on the public display of real-time trade prices on its Electronic Municipal Market Access website.

The MSRB is considering a platform with "dramatically enhanced municipal securities pricing," according to a board press release.

The board is seeking to gather information for the current concept release on the potential costs and benefits of adding new information to trade reporting requirements for municipal securities dealers and enhancing the process of collecting and disseminating post-trade data.

The MSRB said it also poses questions on key regulatory components needed to create the free public access venue for pre-trade data in the municipal securities market.

The concept proposal on expanding pre- and post-trade data in the municipal market is the second in a series of proposals to address the issue of price transparency, particularly for retail investors, the release noted.

In a January concept proposal, the MSRB first sought feedback on industry technological capabilities and constraints for price transparency and considered shortening the 15-minute window for reporting trades.

The MSRB said both concept releases are an outgrowth of the MSRB's long-range plan for market transparency products, which in 2012 envisioned developing an integrated display of relevant pricing-related data.

The releases also address concerns raised in the Securities and Exchange Commission's subsequent report of July 2012 about the amount and quality of price discovery information available in the municipal market.

"The MSRB is taking an incremental approach to the development of an expanded, interactive and real-time display of pricing-related market data on the EMMA website," MSRB executive director Lynnette Kelly said in the release.

"We want to make useful information available but also need to take into account industry practices and technology in the development of the next generation price transparency system."

Comments should be submitted to the MSRB by Nov. 1.

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