The New Issue Information Dissemination Service (NIIDS) is used in conjunction with the New Issue Eligibility service. NIIDS was created to improve the trade reporting and price transparency of transactions for new issues of municipal securities; it is an automated system that disseminates new-issue information for municipal securities.
NIIDS, developed by DTC at the request of the Securities Industry and Financial Markets Association (SIFMA), is designed to expedite the dissemination by underwriters to information vendors of new-issue information for municipal securities. NIIDS collects information about a new issue from underwriters or their representatives in an electronic format and then makes that data immediately available to vendors that provide such information to market participants.
NIIDS also serves as the centralized and automated hub for the collection and dissemination of the required information to satisfy the Municipal Securities Rulemaking Board’s (MSRB’s) reporting standards as outlined in its Rule G-34.
Who Can Use the Service
Lead managers, underwriters, placement agents and other market participants that are DTC participants are eligible to use the service. In addition, firms that are not direct participants but maintain a clearing relationship with a DTC participant can use the service as a correspondent; however, the Participant through whose account the securities are processed remains responsible to DTC for all activities in its account.
- NIIDS enhances price transparency and makes trade reporting more efficient for municipal securities.
- NIIDS provides the municipal market with a single source of data.
- NIIDS disseminates data in real time.
- The service enables municipal underwriters to comply with MSRB’s Rule G-34.
- With NIIDS, underwriters only input data once because MSRB feeds the NIIDS data directly into its EMMA reporting system.
How the Service Works
When applying for DTC eligibility, all applicable NIIDS Data Elements must be input to DTC’s underwriting system, UW SOURCE, using the same process outlined in New Issue Eligibility. This information, the data needed for trade reporting, trade matching and to set up trade confirmations (“trade-eligible data”) , as well as other data required for DTC eligibility review must be submitted to DTC in order to make an eligibility determination for a municipal security.
Once a data file has been transmitted to DTC, it is accepted or rejected and the status is reported to the sender. DTC timestamps and records the source of the information. DTC accepts multiple transmissions and changes the status of the issue from “pending” to “trade eligible” when all the required data has been received. After receipt of the minimum required data, and only after the Dissemination Agent has given its authorization, the NIIDS data will be disseminated to subscribers. Authorization occurs when the Disseminating Agent sets the dissemination flag to “yes.”
The Dissemination Agent’s contact information is distributed to enable subscribers to contact it with questions or comments. Subscribers and DTC participants can access the data from NIIDS in real time to populate their security masterfile databases.
Any firm that wishes to receive NIIDS data elements through UW SOURCE must sign a NIIDS Subscriber Agreement.
DTC does not validate or seek to confirm the NIIDS data elements but merely acts as a conduit to pass along such information.
DTC records and makes available the following information to the MSRB:
- The time when the issue was made trade eligible;
- The date and time of the formal award; and
- The date and time of first trade execution.
The results are added to the user’s home page of UW SOURCE, enabling firms to view and manage their municipal issues.
For More Information
Please contact Client Support at 866-724-4402.