MSRB Receives SEC Approval to Shorten the Timeframe for Trade Reporting to One Minute

Contact: Aleis Stokes, Chief External Relations Officer
202-838-1500
[email protected]

MSRB RECEIVES SEC APPROVAL TO SHORTEN THE TIMEFRAME FOR TRADE REPORTING TO ONE MINUTE

Amendments Include Exceptions for Manual Trades and Firms with Limited Trading Activity

Washington, D.C.- The Municipal Securities Rulemaking Board (MSRB) today received approval from the Securities and Exchange Commission for amendments to MSRB Rule G-14, shortening the time for municipal securities trades to be reported to MSRB. The amendments change the current 15-minute standard to as soon as practicable, but no later than one minute after the time of trade, subject to certain exceptions, including new exceptions for manual trades and firms with limited trading activity.

"Today's approval order represents the culmination of our rulemaking initiative to amend MSRB Rule G-14 to establish a new one-minute standard of trade reporting," MSRB Chair Meredith Hathorn said. "I want to acknowledge the invaluable feedback we received from our stakeholders during the comment period, which resulted in a rule that is not only more fair and equitable but also one that advances the public interest in a more transparent municipal securities market."

MSRB will announce the effective date of the rule change in a future MSRB notice. Manual trades will be subject to a phase-in period to an eventual 5-minute standard over the course of several years.

MSRB initially sought comment from stakeholders on its one-minute trade reporting proposal in August 2022, which resulted in a robust response from market participants. After reviewing the comments, MSRB engaged in additional analysis and extensive engagement with market stakeholders to understand why certain types of voice-brokered, block and other trade types might not currently be readily reportable within one minute, and to understand potential resource or other barriers to meeting a new one-minute timeframe that might exist for some firms, including smaller or less active firms.

"As we strive to enhance transparency in the municipal securities market, it is important to acknowledge the critical roles served by firms of all types and different manners of trading," MSRB Chief Regulatory and Policy Officer Ernesto Lanza said. "The amendments approved today represent a significant modernization of the trade reporting paradigm. They allow investors and other market participants to have access to more contemporaneous prices, while ensuring firms executing manual trades and those with limited trading volumes can continue to effectively serve the diverse range of customers participating in this market."

Trades reported to MSRB's Real-time Transaction Reporting System (RTRS) are made available for free to the public via the Electronic Municipal Market Access (EMMA®) website, providing investors, dealers, municipal advisors and other market participants with the information they need to make informed decisions about the pricing of municipal securities.

Read the notice.