The SEC yesterday approved rule changes by FINRA and the MSRB to withdraw last year’s amendments which would have required most TRACE and RTRS bond trades to be reported within one minute of execution. This final action reversing September’s approval of the trade reporting initiatives follows an extensive BDA advocacy campaign to refine and ultimately withdraw the trade reporting changes. The one-minute reporting initiatives are now officially and fully withdrawn.
In its release approving the withdrawal of the MSRB amendments, the SEC said it “agrees that the proposed rule change [to withdraw last year’s amendments] is reasonably designed to remove impediments to and perfect the mechanism of a free and open market in municipal securities, and will protect investors and the public interest, because it reasonably balances the benefits of greater market transparency through more timely disclosures and dissemination of information provided through RTRS with the continued feasibility and compliance concerns raised by market participants. The proposed rule change will also foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in municipal securities and municipal financial products.”
The Commission statement on the FINRA rule amendments is available here. The statement on the MSRB amendments is available here. Please call or write if you have any questions.