MSRB Amends "Time of Trade" Disclosure Requirements

The MSRB adopted amendments affecting required disclosure at the time of trade under MSRB Rule G-47 ("Time of Trade Disclosure"). The amendments provide new scenarios that might require time of trade disclosure and "codify, consolidate and retire certain interpretive guidance." (See related coverage.)

The new amendments added scenarios that may be considered material and, therefore, require disclosure under Rule G-47, including:

• "yield to worst," which describes a scenario in which the computed yield is different than the yield at which the transaction was affected. The MSRB said "the computed yield must also be disclosed on the confirmation;"
• "unavailability of official statement for new issue customers," which describes a scenario in which "the fact that no official statement is available on EMMA or that an official statement is only available from the underwriter ... may be a material fact and require a time of trade disclosure;" and 
• "unavailability of continuing disclosure," which describes a scenario in which "an issuer or other obligated person has not agreed to make continuing disclosures with respect to the municipal security," a disclosure that may be material and would require disclosure. 

The amendments also:

• codify existing interpretive guidance related to market discount and zero coupon or stepped coupon bonds,
• retire interpretive guidance on conversion costs and secondary market insurance,
• consolidate existing guidance on inter-dealer time of trade disclosure, and
• make technical or clarifying amendments.

The MSRB set March 3, 2025, as the compliance date.