MSRB seeks input on proposed municipal market product for researchers

By Wendy Van Sickle

Columbus, Ohio, July 16 – The Municipal Securities Rulemaking Board is seeking input on its proposed creation of a historical trade data product for higher education institutions, according to a press release.

The product would support academic research on municipal market trading practices, MSRB said.

The board collects trade data from dealers through its Real-Time Transaction Reporting System. Certain data from that effort are disseminated to the public through the Electronic Municipal Market Access (EMMA) website and made available in a real-time feed on a paid subscription basis.

In both of those methods, identifying information about dealers involved in transactions is exclusively for regulatory purposes.

“Academic researchers have requested access to trade data containing dealer identifiers to better understand secondary market trading practices in the municipal securities market, including issues related to intermediation costs, dealer participation and liquidity previously explored in the MSRB’s 2014 study on secondary market trading,” the release said.

“The MSRB’s proposal for a historical data product for academics includes anonymous dealer identifiers to assist researchers in distinguishing transactions executed by specific parties, while still protecting their actual identity.”

Input is requested from researchers, dealers and other market participants about appropriate parameters for this product. Comments may be submitted to the MSRB no later than Sept. 14. Comments may be submitted online at www.msrb.org/CommentForm.aspx.

Meanwhile, the Financial Industry Regulatory Authority (FINRA) is also soliciting comment during the same period on a similar proposal that would apply to other areas of the fixed income market.

FINRA is proposing to create a Trade Reporting and Compliance Engine (TRACE) data set for academic use “that would include masked market participant identifiers,” the authority said in a news release.

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