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
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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
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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