Real-Time Price Transparency in the Municipal Markets Implemented

Securities and Exchange Commission (SEC) Chairman William H. Donaldson last week commended the Municipal Securities Rulemaking Board (MSRB) for its implementation of real-time price transparency in the municipal market. Chairman Donaldson said, "Today is an historic moment for all municipal bond investors. For the first time, investors will have ready access to real-time price data for municipal securities."

Beginning on Monday, brokers, dealers and municipal securities dealers must report transactions in municipal securities to the Municipal Securities Rulemaking Board's Real-Time Transaction Reporting System, or "RTRS," within 15 minutes of the time of trade execution instead of by midnight on trade date, as is currently required. Upon receipt of this transaction data, RTRS will immediately perform automated error checking and will electronically disseminate prices, providing the municipal securities market with near real-time transaction price transparency for the first time. The Bond Market Association has agreed to make this municipal bond trade information freely available to all investors on its Web site at www.investinginbonds.com.

The availability of real-time price transparency is expected to benefit municipal bond investors through more efficient pricing and enhanced investor confidence. Information relevant to the value of municipal securities should be incorporated more quickly and reliably into transaction prices. Real-time price transparency should also increase confidence that the best market price for specific securities has been located. For both institutional and retail investors, the open availability of market prices should instill greater confidence that pricing mechanisms in the market are fair, open and efficient. In addition, the new RTRS facility will enhance the surveillance database and audit trail of transaction data used by enforcement agencies.

The Commission and the MSRB have had a long-standing goal of increasing price transparency in the municipal securities market through the dissemination of comprehensive and contemporaneous pricing data. Today marks the culmination of that multi-year effort.

You may like these other stories...

The 2014 proxy season saw significant growth in audit committee transparency, continuing a recent trend of Fortune 100 companies going beyond the minimum disclosures required, according to a new report from Ernst & Young...
The average annual salary for US finance and accounting professionals who have the Certified Management Accountant (CMA) credential has gone up slightly over the past year, according to the results of a new study from the...
As the volume of account reconciliations continues to surge, most corporate accounting and finance departments in the United States and Canada are still using a labor-intensive process to make sure their accounts’...

Already a member? log in here.

Upcoming CPE Webinars

Sep 24
In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards. A dashboard condenses large amounts of data into a compact space, yet enables the end user to easily drill down into details when warranted.
Sep 30
This webcast will include discussions of important issues in SSARS No. 19 and the current status of proposed changes by the Accounting and Review Services Committee in these statements.
Oct 21
Kristen Rampe will share how to speak and write more effectively by understanding your own and your audience's communication style.
Oct 23
Amber Setter will show the value of leadership assessments as tools for individual and organizational leadership development initiatives.