Effective November 5, 2012, broker-dealers must report the contractual dollar price of inter-dealer transactions in municipal securities. This information is reported in addition to the information currently reported for such transactions, which includes final money, par amount, and accrued interest. The information is submitted to the Depository Trust and Clearing Corporation’s Real-Time Trade Matching System. Note that these reporting requirements are different from those for customer trades – for customer trades, the broker-dealer must report a dollar price and yield.
This change was put in place to address situations where the MSRB Real-Time Transaction Reporting System would calculate incorrect dollar prices for trades of bonds with nonstandard par values.
This change had been announced previously, but the effective date had not yet been set.
This alert applies to the Series 7.