The MSRB is seeking input on proposed changes to the current system of collecting and disseminating trade data that would expand the data made available on EMMA. Among the proposed new data elements is information about trades in new issues that result from conditional allocations by dealers, information regarding sale transactions by dealers that have long-term marketing agreements with underwriters and information about transactions executed through alternative trading systems. Additionally, the proposed changes include a new indicator for customer trades involving non-transaction-based compensation arrangements. Comments are due no later than September 26, 2014.
“All of these post-trade data elements would enhance transparency in the municipal securities market,” said MSRB Executive Director Lynnette Kelly. “These proposed changes are among the many steps we are taking to ensure that EMMA continues to evolve in response to changing municipal market practices and technological capabilities.”
The MSRB first articulated plans to develop the next generation of its Real-time Transaction Reporting System (RTRS) in its 2012 long-range plan for market transparency products. The plan called for the incremental development of a new “central transparency platform” on EMMA to provide integrated, real-time trade data to investors and other market participants. Market feedback, gathered through two concept releases and ongoing dialogue with industry members, informed the development of the MSRB’s proposed post-trade reporting framework.
As the MSRB advances the proposed framework for post-trade transparency, it will continue engaging in outreach with market participants to gather additional input for the first phase of an incremental approach for collecting and disseminating bid-wanted information and other pre-trade data on EMMA.
The MSRB protects investors, state and local governments and other municipal entities, and the public interest by promoting a fair and efficient municipal securities market. The MSRB fulfills this mission by regulating the municipal securities firms, banks and municipal advisors that engage in municipal securities and advisory activities. To further protect market participants, the MSRB provides market transparency through its Electronic Municipal Market Access (EMMA®) website, the official repository for information on all municipal bonds. The MSRB also serves as an objective resource on the municipal market, conducts extensive education and outreach to market stakeholders, and provides market leadership on key issues. The MSRB is a Congressionally-chartered, self-regulatory organization governed by a 21-member board of directors that has a majority of public members, in addition to representatives of regulated entities. The MSRB is subject to oversight by the Securities and Exchange Commission.