MSRB: Trading volume dips to 10-year low as number of trades gains

By Tanya Meyer

Chicago, Nov. 19 – The Municipal Securities Rulemaking Board disclosed new data in a press release on Thursday showing the lowest volume of trading in municipal bonds since real-time tracking of the data began in 2005.

Based on municipal market statistics for the third quarter of 2015, the total par amount traded declined 18% to $551 billion, compared to $672 billion traded in the same quarter a year ago.

The number of municipal securities trades in the third quarter rose to 2.33 million, compared to 2.19 million in the same period a year ago.

MSRB also released the following municipal securities trading updates for third quarter 2015:

• Daily customer trades increased 9%, with an average of 15,189 purchases per day, compared to 13,953 in the third quarter of 2014;

• The volume of interest rate resets on municipal variable rate demand obligations fell to 134,817, compared to 155,182 in the same period a year ago;

• Daily retail-sized trades of $100,000 or less moderately increased, with an average trade volume of $405 million, or 9% of all customer purchases, compared to $364 million, or 7% of all customer purchases, a year ago.

MSRB, based in Alexandria, Va., regulates the municipal market.

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