|
The MSRB is seeking approval from the Securities and Exchange Commission (SEC) to require municipal
securities dealers to seek the most favorable price possible when executing
transactions for retail investors. This so-called “best-execution” standard for
transactions in the municipal market aims to protect investors and improve the
structure and efficiency of the municipal market. The new rule is part of an
ongoing effort to enhance the transparency and fairness of pricing in the
municipal securities market through rulemaking and enhancements to the MSRB’s Electronic
Municipal Market Access (EMMA®) website.
Read the SEC rule filing and
proposed rule language.
The MSRB’s ongoing efforts on transparency and fair
pricing include a proposal
to make additional trade price information available to investors, and a planned proposal regarding disclosure of information to investors
about municipal trades to help them better understand some of the factors
associated with the costs of their transactions.
In the next step of the development
of a regulatory framework for municipal advisors, the MSRB is seeking comment on amended draft MSRB Rule G-37 to extend the rule to cover municipal advisors. The
draft amendments are designed to address potential pay-to-play practices by
municipal advisors and provide greater transparency regarding their political
contributions. Comments on the MSRB’s draft rule are due no later
than October 1, 2014.
The MSRB also is reviewing comments received on revised draft MSRB Rule G-42, on core standards of conduct and duties of municipal
advisors.
This fall, the MSRB plans
to publish a request for comment on amending MSRB
Rule G-20, which would establish limitations on gifts given by municipal
advisors in their professional capacity.
Read more about the status of municipal advisor
rulemaking.
 The number of financial and operating disclosures submitted
to the MSRB by issuers of municipal securities rose sharply in May and June of
this year when compared to the same months in 2013. The
higher volume in May and June 2014 could be attributed to underwriters’ and issuers’
participation in the SEC's Municipal Continuing
Disclosure Cooperation initiative, which was announced in March 2014. The initiative
provides issuers and underwriters the opportunity to self-report to the MSRB previously
unreported disclosure documents in an effort to comply with continuing
disclosure obligations specified in SEC Rule
15c2-12.
The MSRB will soon publish a report on continuing disclosure activity
over the last year. For data on municipal new issuance, trading activity,
continuing disclosures or variable rate resets, visit the MSRB’s
EMMA website.
MSRB Proposal to Establish Best-Execution Rule Published in Federal Register September 8, 2014
MSRB Seeks Input on Strategic Priorities September 8, 2014
Proposed
Rule Change Consisting of Rule G-18, on Best Execution of Transactions in
Municipal Securities, and Amendments to Rule G-48, on Transactions with
Sophisticated Municipal Market Professionals ("SMMP"), and Rule D-15,
on the Definition of SMMP August 20, 2014
Request
for Comment on Draft Amendments to MSRB Rule G-37 to Extend its Provisions to
Municipal Advisors August 18, 2014
Request
for Comment on Enhancements to Post-Trade Transaction Data Disseminated Through
a New Central Transparency Platform August 13, 2014 |
