MSRB Monthly Update - August 2012

MSRB Monthly Update - August 2012
Coming Soon Final
Later this month, the MSRB will publish its annual summary of continuing disclosures made by issuers of municipal securities. View all research reports.
This fall, the MSRB will add new features to its State and Local Government Toolkit and also begin publishing statistics for new issues of municipal securities on its EMMA® website.
Did you know
The MSRB issues annual, quarterly and periodic statistical reports.

Highlight of the Month

Dodd-Frank Update: Two Years Later

Two years after the implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act, the Securities and Exchange Commission has not issued a final definition of "municipal advisor." The MSRB's rulemaking for municipal advisors is contingent on a final definition. Last month, MSRB Chair Alan Polsky testified at a Congressional hearing on the effect of the municipal securities provisions of the Dodd-Frank Act. His testimony to the Subcommittee on Capital Markets and Government Sponsored Enterprises of the House Financial Services Committee emphasized the need to protect state and local governments in their municipal finance transactions. Read the MSRB's written testimony.
Meanwhile, the Government Accountability Office and the Securities and Exchange Commission each released in July a report on the state of the municipal securities market. Both reports noted the MSRB's commitment to improving transparency and disclosure, educating the market and enhancing the EMMA system.

Municipal securities reports

New and Noteworthy

The MSRB held its quarterly Board of Directors meeting July 25-27, 2012 where it evaluated issues related to the protection of municipal market investors and state and local governments. The Board addressed the following issues:
    • Processes used to develop municipal market indices
    • Proposed changes to political contribution regulations
    • Investor protection issues
    • Initiatives related to 529 college savings plans
    • Costs and benefits associated with rulemaking

    EMMA Market Statistics

    Number of Continuing Disclosure Submissions Continue to Increase

    EMMA statistics
    Between July 2009 and June 2012, the MSRB received 396,091 continuing disclosure documents. Approximately 53 percent, or 208,642, of all submitted continuing disclosure documents from July 2009 through June 2012 were for event disclosures and 47 percent, or 187,449, were for financial and operating disclosure documents. Audited financial statements or CAFRs (Comprehensive Annual Financial Report) accounted for 40 percent of all financial and operating disclosures, while annual financial information and operating data and quarterly/monthly financial information accounted for 32 percent and 13 percent, respectively. For event disclosures submitted between July 2009 and June 2012, bond calls accounted for 73 percent of all submissions and rating changes accounted for 14 percent.
    The MSRB will soon release an update to its annual report summarizing continuing disclosure submissions.
    For more information or other statistics on municipal trading activity, continuing disclosures or variable rate resets, visit the MSRB’s EMMA website.

    Regulatory Roundup

    (August 9, 2012)