MSRB Monthly Update - April 2012

Municipal Securities Rulemaking Board sent this bulletin at 04/18/2012 11:55 AM EDT

The MSRB and the Bond Dealers of America are co-hosting a municipal securities regulation seminar for municipal market participants on Wednesday, May 2, 2012 in St. Louis, Missouri.

The MSRB's Electronic Municipal Market Access (EMMA) website turned four years old on March 31, 2012. Read about the development of EMMA.

Highlight of the Month

Last week, the MSRB encouraged state and local governments that issue municipal securities to make information about their bank loan financings publicly available on the MSRB’s Electronic Municipal Market Access (EMMA®) website. In doing so, they can provide timely access for investors and other market participants to key information useful in making informed investment decisions.

New and Noteworthy

MSRB Issuer Protection Initiatives

The MSRB recently requested comment on two proposals aimed at increasing issuer protection. One proposal would prohibit brokers, dealers and municipal securities dealers from using the term “not reoffered” or “NRO” in any written communication unless it also included the initial offering price or yield information about the applicable new issue of municipal securities. Read more.

The other proposal includes amendments to MSRB rules that govern the responsibilities of dealers in the conduct of retail order periods. The proposed rule changes seek to address how dealers fulfill the terms and conditions established by issuers of municipal securities in connection with bond sales, among other practices. Read more.

EMMA® Market Statistics

New Issuance Picks Up While Trading Activity Slows in the First Quarter*

Issuance of municipal securities surged in the first quarter of 2012 to $78.2 billion, after only $46.9 billion in the same period in 2011. However, trading activity slowed nearly 7 percent in the first quarter of 2012 with $680.6 billion traded, compared to $729.4 billion traded in the first three months of 2011.

For more information or other statistics on municipal trading activity, continuing disclosures or variable rate resets, visit the MSRB’s EMMA website.

* all data reflect changes through April 11, 2012

Regulatory Roundup

MSRB Reminds Dealers of Limits on Redactions of Liquidity Facility Documents for Variable Rate Securities (April 11, 2012)

MSRB Requests Comment on Simplifying New Issue Submission Requirements for Underwriters (April 10, 2012)

MSRB Encourages Voluntary Disclosure of Bank Loans by State and Local Governments (April 3, 2012)

MSRB Seeks Approval on Revised Definition of Sophisticated Municipal Market Professional (March 26, 2012)

MSRB Receives SEC Approval on Amendments to MSRB Rule G-14 and Amendments to the Real-Time Transaction Reporting System (March 21, 2012)

MSRB Requests Comment on Prohibiting Not Reoffered Designation in Connection with New Issues of Municipal Securities (March 13, 2012)

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