The MSRB reminds brokers, dealers and municipal securities dealers (collectively "dealers") that changes to MSRB transaction reporting requirements will become effective on 4/30/12.  The changes remove certain infrequently used data reporting requirements to simplify transaction reporting procedures. What is Changing. MSRB rules on transaction reporting contain 2 requirements that have applied to few transactions, yet generated questions from dealers and provided only limited value for use in market surveillance. First Requirement: inter-dealer transactions require the identity of an "intermediate dealer," or correspondent of a clearing broker that passes data to the clearing broker about transactions effected by a 3rd dealer - the "effecting dealer" - to be included on applicable trade reports.

• Originally, MSRB wanted to have the intermediate dealer included in a trade report so as to assist market surveillance staff by having an additional dealer associated with a transaction reported - in the event that the effecting dealer’s identity was erroneously reported.
• It turned out, however, that few transactions contain such an intermediate dealer and, since the November 2009 enhancement to transaction reporting to add the effecting broker to the matching criteria in RTRS, the identity of the effecting dealer is rarely, if ever, erroneous.
• And so, beginning 4/30/12, dealers no longer will be required to identify intermediate dealers on trade reports.

Second Requirement. This applies to any transaction effected at a price that substantially differs from the market price as a result of the parties to the transaction agreeing to significantly deviate from a normal settlement cycle.

• For such transactions, dealers have been required to include an identifier on the trade report that allows the trade report to be entered into the RTRS audit trail, yet suppressed from price dissemination.
• Yet, only a small number of transactions have been reported with this identifier.
• And so, beginning 4/30/12, this special condition indicator will be removed from RTRS and dealers effecting such transactions will be required to use the generic “away from market” indicator.

RTRS Specifications and Testing. The MSRB has made a test environment that reflects the changes available to dealers and their agents for making test submissions to RTRS since 2/6/12.  Links to the current technical specifications can be found below and these documents also are available on the trade data page of the Market Disclosures and Data section of the MSRB web site. MSRB Contacts. Direct questions to:  MSRB Support at 703-797-6668.  Direct other questions to:  Justin Pica, Director, Product Management-Market Transparency at 703-797-6716. For further details, go to:  [MSRB Members Notice 12-21, 4/17/12].  To access the additional information noted above, go to:  [RTRS Specifications], and [RTRS Web User Manual].