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ASA Submits Comments on MSRB and FINRA Proposal


WASHINGTON, D.C. – Today, the American Securities Association (ASA) sent a comment letter to the Municipal Securities Rulemaking Board (MSRB) and the Financial Industry Regulatory Authority (FINRA) regarding proposed amendments to reduce the reporting timeframe for eligible corporate and municipal fixed income securities.

Since 2005, MSRB and FINRA rules have required trades be reported “as soon as practicable,” meaning eligible securities have been subject to a 15-minute outer limit reporting timeframe. The amendments seek to create a new reporting limit of one minute.

ASA CEO Chris Iacovella issued the following statement in response:


“With no evidence of market failure or investor harm, the changes the MSRB and FINRA are proposing will impose significant changes to our fixed income markets without any benefits.

“Even in times of stress and severe drops in liquidity, corporate and municipal fixed income markets have proven their ability to operate with maximum efficiency and transparency. The proposal not only dismisses that fact but also ignores the substantial costs this rule will impose on broker-dealers and their customers.

“One has to wonder why the MSRB and FINRA are proposing a rule that threatens the participation of small and mid-size firms in the corporate and municipal markets. In our view, MSRB and FINRA should drop this proposal in its entirety.”


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