Reminder Notice Concerning Automated Comparison of Cash and Next-Day Trades: Rule G-12(f)

MSRB Rule G-12(f), on automated comparison of inter-dealer transactions, requires dealers to submit all transactions eligible for automated comparison to a registered clearing agency for comparison.  The rules of the registered clearing agency, rather than MSRB rules, define which transactions are eligible for comparison.  Currently, trades that settle on trade date (“cash” trades) and trades that settle the day after trade date (“next-day” trades) are ineligible for comparison at National Securities Clearing Corporation (NSCC).

            In the fourth quarter of 2003, however, NSCC plans to implement the first phase of its Real-Time Trade Matching (RTTM) system. NSCC has announced plans to accept cash and next-day transactions for comparison through RTTM.[1]  The MSRB reminds dealers that cash and next-day transactions will be required to be submitted for comparison when they become eligible.  The MSRB will publish an additional notice when NSCC announces a date for this change.   

July 25, 2003