SEC seeks more feedback for one minute reporting proposal
2 min read
The Securities and Exchange Commission is seeking additional feedback on the Municipal Securities Rulemaking Board’s one minute trade reporting proposal, beginning a process that often results in eventual disapproval.
The move begins formal “disapproval proceedings” related to the proposed amendments to Rule G-14 on time of trade reporting, the SEC’s answer to the amendments
“We are disappointed that the Commission has rejected the MSRB and FINRA proposals to shorten the time to report many trades to the RTRS and TRACE,” said Michael Decker, senior vice president of federal policy and research at the Bond Dealers of America. “While we question the need to shorten the trade reporting time at all, we believe the proposals before the SEC struck a reasonable balance between enhancing transparency and providing a reasonable means of compliance. We are hopeful that if the MSRB and FINRA pursue alternative proposals that they produce workable regulations.”
The board initially requested comment in August 2022 and since then the proposal has garnered significant backlash as many have noted the negative impact the proposal would have on small firms, and have called into question why such a change was necessary for the muni market to begin with.
Since then the MSRB added exemptions for de minimis market activity and for manually executed trades.
For some, this move gets at the complex nature of the problem.
“If this was a simple matter, the SEC would’ve approved it. By instituting proceedings, the SEC gave itself more time to really dig into these filings and make sure they have a solid record,” said Leslie Norwood, managing director, associate general counsel and head of municipal securities at the Securities Industry and Financial Markets Association.
