NASD Notice to Members 04-95 - December 2004

NASD Issues Reminder to Members Regarding the Municipal Securities Rulemaking Board's Implementation of Real-Time Reporting and Dissemination of Transactions in Municipal Securities

Executive Summary

NASD is issuing this Notice to Members to remind firms to prepare for the implementation on January 31, 2005, of the reporting of municipal securities transactions within 15 minutes (real-time reporting), immediate dissemination of such transaction information (real-time dissemination), and automated comparison of inter-dealer transactions in such securities. The changes are set forth in amended Municipal Securities Rulemaking Board (MSRB) Rule G-14 and Rule G-12(f). Firms must review all areas of their business activities and determine the effect of the amended reporting and comparison rules and real-time dissemination of information on municipal securities transactions. Among other actions, firms should review and revise policies, practices, and procedures, as needed, of associated persons engaged in trading or selling municipal securities, the firm’s investment banking operations, the back office, the business line supervisors of any business or operational area that is affected by the changes, and the firm’s legal, compliance, and audit departments.


Questions concerning this Notice should be directed to Jon Soderlund, Assistant Director, Market Regulation, Regulatory Policy and Oversight (RPO), at (240) 386-5111; Cindy Friedlander, Program Manager, Member Regulation, RPO, at (202) 728-8133; or Sharon K. Zackula, Associate General Counsel, Office of General Counsel, RPO, at (202) 728-8985.