Notice to Members 00-08

NASD Reminds Members of Their Obligations Regarding Municipal Securities Transaction Reporting

NASD Regulation, Inc. (NASD RegulationSM) reminds member firms about the obligations imposed by Municipal Securities Rulemaking Board (MSRB) Rules G-12 and G-14, particularly the requirement that member firms report their municipal securities transactions accurately and in a timely manner. The initial phase of the MSRB Transaction Reporting System, which became effective in 1995, requires the reporting of all inter-dealer municipal transactions. The second phase, effective since 1998, requires the reporting of all customer municipal transactions.

Accurate and timely automated comparison and reporting of municipal securities transaction information is critical to a member firm’s trade processing function, accurate public transaction dissemination and resulting price transparency, and efficient and effective regulatory oversight of municipal securities trading and sales practices.

Questions concerning this Notice may be directed to Malcolm Northam, Director, Fixed Income Regulation, NASD Regulation, at (202) 728-8085.