MSRB to effect change for dealers to report contractual dollar price

By Jennifer Chiou

New York, Jan. 31 - The Municipal Securities Rulemaking Board said that it will make effective on Feb. 25 the previously deferred changes to its transaction reporting requirements that would require brokers, dealers and municipal securities dealers to report for inter-dealer transactions the contractual dollar price at which the transaction was executed.

According to an MSRB release, all dealers that report inter-dealer transactions to the MSRB Real-Time Transaction Reporting System (RTRS) will need to make preparations for this change.

The change was previously slated to go into effect on Nov. 5, but the effects of Hurricane Sandy postponed action.

The board said that both the purchasing and selling dealers will submit information about the transaction to the Depository Trust and Clearing Corp.'s Real-Time Trade Matching System. This information submitted to RTTM is forwarded to the RTRS for trade reporting.

MSRB noted that requiring dealers to report the contractual dollar price at which the transaction was executed, in addition to the information currently reported, would provide RTRS with an additional data point to use in its evaluation of which dollar price should be disseminated from RTRS for price transparency purposes.

Questions on the RTRS may be directed to 703 797-6668. Other questions may go to Justin R. Pica, director of product management-market transparency, at 703 797-6716.

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