MSRB requests delay for new reporting system

The Municipal Securities Rulemaking Board on Friday proposed a partial delay in the launch of its new transparency system for short-term securities after many in the industry said they need more time to implement the system. The Alexandria, Va.-based MSRB said it would like to delay the deadline for providing data on variable-rate demand obligations until April 1, which would provide additional time for securities dealers to implement automated systems to submit data about VRDO to the Short-Term Obligation Rate Transparency system. The board said it would ask for no delay for the proposed Jan. 30 start date for requiring brokers to report auction rate securities to the SHORT System. The MSRB made the proposed changes in amendments that were filed with the Securities and Exchange Commission in November. The amendments are pending approval. The creation of the SHORT system follows the collapse of the $330 billion auction rate securities market, which seized up last year, leaving investors unable to cash out of positions. Last February, increasing losses in mortgages forced the dealers who underwrote and managed the market to stop acting as buyers of last resort.