Transcript Slide 1
Muni Forum of New York
Ronald A. Stack, MSRB Chair
Lynnette Hotchkiss, MSRB Executive Director
September 17, 2009
MSRB in a Nutshell
Self Regulatory Organization for broker-dealers and bank
dealers in the municipal market
no rulemaking authority over issuers, intermediaries or
other market participants
no non-securities rulemaking authority
MSRB coordinates with SEC, FINRA, bank regulators on
enforcement
Coordinating efforts with IRS, Treasury, Federal Reserve,
Congress and others on market issues
Congressionally mandated mission:
protect investors and the public interest
promote fair and efficient municipal bond market
MSRB furthers mission through rulemaking, information
services/systems, outreach and education and market
leadership
The Increased Focus on the
Municipal Market in Washington
House Financial Services
Bills/Hearings
Senate Banking Committee Hearings
Treasury/Federal Reserve
State AG Interest
SEC – priority of Mary Schapiro
Obama Administration
Current Status: On Hold
Regulation of Financial Intermediaries
MSRB Statement Regarding Regulation of
the Municipal Market on January 9, 2009
Focus attention on unregulated municipal market
participants
MSRB Letter to Congress with Specific
Recommendations on Regulating Financial
Intermediaries on February 11, 2009
MSRB Report on Unregulated Market
Participants
House Financial Services Committee Bill
Would regulate unregulated muni market
intermediaries
MSRB’s Recent Investor Protection
and Fair Practice Initiatives
Build America Bonds – MSRB Notice 2009-15 (April 24, 2009)
Focus on customer protection obligations – fair dealing, disclosure of
material facts, suitability of recommendations
California IOUs – MSRB Notice 2009-41 (July 10, 2009)
Focus on customer protection obligations – fair dealing, disclosure of
material facts, suitability of recommendations, fair pricing
VRDOs – MSRB Notice 2009-42 (July 14, 2009)
Focus on customer protection obligations – fair dealing, disclosure of
material facts, suitability of recommendations, fair pricing
MSRB/FINRA Notice – MSRB Notice 2009-38 (June 30, 2009)
Joint reminder on investing in municipal bonds in light of current
market conditions
MSRB Agenda
Enhancements to SHORT
Enhancements to EMMA
Bond Ballot Initiatives
Priority of Orders
Bank PAC Disclosures
G-Rules Review
Market Resource to Capitol Hill, Obama
Administration, Fellow Regulators
EMMA: Electronic Municipal Market Access
(www.emma.msrb.org)
Components of EMMA:
official statements – current & historical from 1990
advance refunding documents – current &
historical from 1990
trade prices – real-time & historical from 2005
market statistics
SHORT – transparency for ARS and VRDOs
municipal bond educational resources
Continuing disclosures
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Muni Forum of New York
Ronald A. Stack, MSRB Chair
Lynnette Hotchkiss, MSRB Executive Director
September 17, 2009