MSRB board meeting to discuss next steps in controversial time of trade proposal

The Municipal Securities Rulemaking Board’s upcoming meeting, set to take place on Jan. 25-26, will include discussion of its controversial request for comment on MSRB Rule G-14 on time of trade, an update on the ongoing efforts to modernize its EMMA platform, the recently enacted Financial Data Transparency Act as well as its efforts on diversity and inclusion.

That’s according to the board of directors’ meeting discussion items, released Wednesday.

Perhaps the most anticipated agenda item is the board’s next steps following its request for comment on MSRB Rule G-14 on trade reporting obligations, which garnered 53 comments and immense backlash from the industry over its lack of a perceivable benefit to broker-dealers and potential to eliminate voice brokerage. The board will receive an update on additional MSRB data analysis conducted on the matter as well as an update on stakeholder outreach.

The MSRB is in the midst of a multi-year technology modernization effort, highlighted last year in its launch of EMMA Labs and its MSRB.org makeover. The board will receive an update on the ongoing work and related market transparency systems.

Under its market structure topics, the board will further its efforts on collecting trade data by discussing “a potential pre-trade data collection initiative for the municipal securities market in coordination with fellow regulators,” the meeting notes said. The board will also discuss the Financial Data Transparency Act, about which there remains a bevy of questions that need to be hammered out by the muni market before implementation. The board will discuss its potential impact on the municipal securities market.

The board will also receive an update on its mission to create a more fair and efficient market, which has prompted it to, in collaboration with the Financial Industry Regulatory Authority, host a series of roundtable discussions with minority, women and veteran-owned firms “to identify opportunities to foster greater diversity, equity and inclusion in the municipal securities market. This meeting, they’ll discuss the final roundtable discussion.