Pursuant to Rule A-18, participants in the requisite functional and performance testing of the operation of the MSRB’s BC/DR Plans are MSRB Registrants whose submissions of data to the MSRB, taken as a whole, account for a substantial percentage of the MSRB’s data submission volume required to be provided by MSRB Registrants, measured during an established time period (the Measurement Period). The criteria for participant designation are designed to ensure participation by those MSRB Registrants that the MSRB reasonably determines are, taken as a whole, the minimum necessary for maintaining fair and orderly markets should its BC/DR Plans be activated.

Real-Time Transaction Reporting System (RTRS)

The MSRB will designate the top five MSRB Registrants in terms of number of municipal security trades as reported to RTRS during a calendar month prior to the testing, if such MSRB Registrants’ cumulative activity accounts for no less than 30% of the number of municipal security trades reported to RTRS during that month.

Short-term Obligation Rate Transparency system (SHORT)

The MSRB will designate the top five MSRB Registrants acting as program dealers for auction rate securities or marketing agents for variable rate demand obligations (or providing services on behalf of such dealers) that participated in interest rate resets as reported to SHORT during a calendar month prior to the testing, if such MSRB Registrants’ cumulative activity accounts for no less than 30% of the interest rate resets reported to SHORT during that month.

Electronic Municipal Market Access (EMMA) System

For primary market data and document submissions to the MSRB’s Electronic Municipal Market Access (EMMA) System, the MSRB will designate the top five MSRB Registrants that engaged in underwriting activity in terms of par amount underwritten as reported on Forms G-32 during a calendar month prior to the testing, if such MSRB Registrants’ cumulative activity accounts for no less than 30% of the par amount underwritten during that month.

Should the top five criteria not result in representation of at least 30% of the relevant activity on the applicable MSRB system, the top MSRB Registrants that together represent at least 30% of such activity on the applicable system during the Measurement Period will be designated as Participants. The MSRB will individually notify all participants that are required to participate in such testing at least 45 calendar days prior to a functional and performance test of an operation of the MSRB’s BC/DR Plans. The MSRB also will provide participants with information concerning the method of the testing and instructions for participation.

Inquiries pertaining to this notice may be directed to Sally Klemperer, Senior Associate General Counsel, or James McMahon, Senior Assistant General Counsel, at (202) 838-1500.

Source:

Designation Information Regarding Mandatory Participation in Business Continuity and Disaster Recovery Testing (msrb.org)