MSRB Monthly Update - June 2012

Municipal Securities Rulemaking Board sent this bulletin at 06/08/2012 10:05 AM EDT

The MSRB is hosting an educational webinar on the significant changes to MSRB Rule G-17 on the duties of underwriters to state and local governments. The webinar is scheduled for June 27, 2012.

The MSRB and the California Debt and Investment Advisory Commission are co-hosting an education and outreach seminar for municipal market professionals on Tuesday, July 24, 2012 in San Francisco, California.

Based on IRS tax returns, 6.2 million people in the United States reported tax-exempt interest income in 2009.

Highlight of the Month

The MSRB launched an online toolkit to equip investors with basic information about navigating the municipal market. The investor toolkit includes an investor guide that outlines questions to ask when investing in municipal bonds, how to evaluate a municipal bond’s risk and what to expect from financial professionals, among other resources. The toolkit also includes an introductory video and fact sheets about the MSRB's EMMA® website.

Access the investor toolkit.

New and Noteworthy

The MSRB is considering whether it should require disclosure of financial incentives received by underwriters or municipal advisors that may influence their recommendations, as well as payments made by underwriters or municipal advisors to incentivize third parties.

The MSRB's concept release requests public input on whether dealers and advisors should disclose this information, which would be disclosed on the MSRB’s EMMA® website.

EMMA Market Statistics

Number of Reported Auction Rate Resets Continues to Decrease

The number of interest rate resets on municipal auction rate securities reported to the MSRB since early 2009 continued their decline in 2011. Approximately 22,730 ARS rate resets were reported in 2011, down 19.5 percent from the 28,250 rate resets reported in 2010. During the first four months of 2012, the 6,617 reported rate resets were 16 percent lower than volume in the same period in 2011.

The MSRB will soon release an update to its annual report summarizing interest rate, trading and other data on municipal variable rate demand obligations and auction rate securities.

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

Regulatory Roundup

MSRB Reminds Dealers of Upcoming Change to Transaction Reporting Requirements and Availability of Technical Specifications (June 4, 2012)

MSRB Seeks Comment on Enhancing Price Transparency for Large Trades (June 1, 2012)

MSRB Seeks Comment on Disclosure of Payments in Connection with New Issues of Municipal Securities

(May 31, 2012)

MSRB Receives SEC Approval on Revised Definition of Sophisticated Municipal Market Professional (May 29, 2012)

MSRB and CDIAC to Co-Host Education and Outreach Seminar in San Francisco (May 15, 2012)

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