Depository Trust proposes SEC rule change to improve municipals information dissemination

By Sheri Kasprzak

New York, April 15 - Depository Trust Co. is seeking to implement a new Securities and Exchange Commission rule change to implement its New Issue Information Dissemination System for municipal bonds, an SEC notice said.

The NIIDS is an automated system DTC developed to improve the distribution of information on new municipal bonds.

The system will collect information about a new issue municipal offering from underwriters in an electronic format and make that data available immediately to information vendors, the SEC notice said. Currently, the Municipal Securities Rulemaking Board requires muni dealers to report transactions within 15 minutes of the trade time.

"NIIDS is designed to ensure that information is disseminated as quickly and efficiently as possible after the information is made available by the underwriters," the notice said.

"DTC is proposing to provide NIIDS to the industry in order to facilitate the collection and dissemination of new issue information in relation to municipal securities," the notice goes on to say.

Calls for additional details made to DTC were not immediately returned.

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