Which item is not typically included in a municipal trade confirmation?

• A. Whether the transaction was agency or principal
• B. Price or yield
• C. Trade and settlement dates
• D. Issuer's credit rating

Answer: (D)

Understanding what a municipal trade confirmation must show helps explain why the issuer’s credit rating isn’t a typical item. A trade confirmation is a contract document that records the specific terms of the trade between the buyer and seller. Under MSRB rules, it must disclose the capacity of the dealer (whether the firm acted as agent for the customer or as principal), the price or yield of the security, and both the trade date and the settlement date. These details are the essential terms that define how the trade will be settled and what the investor is paying or earning.

The issuer’s credit rating, while important for evaluating credit risk, is not a term of the trade itself. It’s information about the issuer’s credit quality that may appear in other disclosures or research materials, but it isn’t a required element of the trade confirmation. Therefore, the item not typically included on a municipal trade confirmation is the issuer’s credit rating.