MSRB Update: Spring 2019

On-Demand and Free: MSRB Educational Offerings

As part of its ongoing commitment to provide high-quality municipal market education to stakeholders and the public, the Municipal Securities Rulemaking Board (MSRB) is excited to share two major developments.

MuniEdPro®, the MSRB’s eLearning platform for interactive continuing education and municipal market education courses, is now a free service. All 20 MuniEdPro® courses are available at no cost through the MSRB’s website, MSRB.org, either on an individual course basis or by establishing access for a firm or organization. Take advantage of this free education resource here.

The MSRB has also launched the MSRB Podcast, a new free series about regulatory and market structure topics. The MSRB Podcast, available on MSRB.org and most podcast platforms, consists of a 12- to 30-minute immersion into municipal securities regulation, market data and emerging market topics. Each episode deconstructs—for municipal bond market practitioners and others—a topic, drawing on the expertise of featured subject matter experts.

Currently available episodes include:

• A Conversation About Yield Curves
• Professional Qualifications: A Conversation About MSRB Rule G-3
• Getting the Facts on the Muni Market

The MSRB Podcast will periodically release a new episode. Listeners can subscribe and hear new episodes on podcast platforms including Apple Podcasts, Google Podcasts and Spotify, and on the MSRB’s website.

Don’t forget that the MSRB Education Center provides access to additional resources for investors, issuers and others to make informed decisions about the municipal market.

Retrospective Rule Review Update

A significant strategic initiative for the MSRB in 2019 is a continuation of its ongoing retrospective rule review of certain of its rules to ensure they are up-to-date, effective and reflective of the current reality of the municipal market. This year, the MSRB Board of Directors prioritized a review of MSRB Rule G-23, on activities of financial advisors, and MSRB Rule G-34, on numbers, new issue, and market information requirements, among other initiatives.

On February 27, 2019, the MSRB published a Request for Comment on Rule G-34, on the obligation of municipal advisors to apply for CUSIP numbers when advising on competitive sales. Specifically, the organization seeks public feedback on amendments to the CUSIP requirement that went into effect in 2017. Comments are due on May 28, 2019. On March 21, 2019, the MSRB reached the concluding phase of its two-year effort to review its rules on primary offering practices in the municipal securities market and filed proposed rule changes with the SEC related to MSRB Rule G-11, on primary offering practices, and MSRB Rule G-32, on disclosures in connection with primary offerings. As part of this filing, the MSRB also proposed implementing changes to MSRB Form G-32 to expand the data elements collected by the MSRB for primary offerings of municipal securities. On April 10, the MSRB filed a proposed rule change with the U.S. Securities and Exchange Commission (SEC) to amend certain MSRB rules to update cross-references to the rules of other self-regulatory organizations (SROs); delete certain sections of MSRB rules that are outdated or no longer relevant given the expiration or passing of time limitations set forth therein. And on April 19, 2019, the MSRB filed a proposed rule changes with the SEC to eliminate MSRB Rule G-29, on the availability of Board rules, due to the widespread availability of the MSRB Rulebook online.

The MSRB will soon file with the SEC proposed changes to 2012 interpretive guidance concerning the application of MSRB Rule G-17, on conduct of municipal securities and municipal advisory activities, as generally articulated in the November 2018 request for comment, but with modifications based upon stakeholder feedback the MSRB received. It also will publish a concept release about Rule G-23 to elicit input on whether the rule’s requirements continue to achieve their intended purpose and reflect current practices in the municipal securities market.  

Read more about the MSRB’s retrospective rule review.

Upcoming EMMA® Dataport Enhancements

More than 150,000 times each year, issuers and their agents log into a user interface called EMMA Dataport to submit their disclosure documents for posting on the EMMA website. To further assist issuers that rely on EMMA to meet their disclosure obligations and communicate with investors, the MSRB is simplifying the submission process so that issuers can efficiently meet their obligations and attend to other important government business. The EMMA Dataport enhancements include a more intuitive process and seamless access to tools and resources on the EMMA website.

This summer, issuers can expect to see the following improvements when they submit a disclosure to EMMA:

• Guided Submission Process. A new continuing disclosure wizard will guide issuers through a streamlined submission process. The wizard features a simplified question-and-answer format and integrated support aimed at improving the accuracy and reliability of the data collected about a disclosure submission.
• Seamless Navigation. After logging into EMMA Dataport, issuers will be able to seamlessly navigate to all the features on the EMMA website, including their own unique issuer homepage, a calendar of new issues scheduled to come to market, advanced search functions and much more.
• Exportable Reports. Functionality to allow issuers and their agents to export reports of their continuing disclosure submission history also is under development.

These enhancements are the culmination of a three-phase initiative focusing on the EMMA user experience for issuers. Last fall, the MSRB enhanced the process for creating and managing a free customized issuer homepage on EMMA to enable issuers to take more control over how their information is presented to investors. In February 2019, the MSRB updated the EMMA system to accept and display a new type of disclosure required under amended federal securities laws.

Predictive Search is Coming to EMMA®

Based on feedback from market participants about limitations when searching on the EMMA website, the MSRB is about to make EMMA’s search smarter. A new algorithm will allow for predictive searching—by typing just a few characters in the Quick Search box on EMMA’s home page, users can more easily navigate to securities and issuer homepages directly from a dropdown list of items. EMMA’s smart search will be available in late May. Get ready for quicker access to municipal securities issuers and all their disclosure documents and data. Join us for a webinar, Find it Faster: Search Tips for EMMA Users, on June 13 from 3pm to 4pm ET.

Transitioning MSRB Systems and Data to the Cloud

At its recent meeting, the MSRB Board of Directors determined to undertake an enterprise-scale migration of MSRB market transparency systems and data to the cloud. The decision comes on the heels of a feasibility assessment on the risks and costs of a potential migration. The approved migration advances the MSRB’s mission of collection and dissemination of municipal market data in support of market transparency. Cloud services will help ensure the long-term reliability, data quality and security of its market transparency systems.

Read more takeaways from the quarterly board meeting.

Upcoming Event - Town Hall

As part of the MSRB’s ongoing commitment to stakeholder engagement, Richard Ellis and Renee Boicourt, members of its Board of Directors, as well as President and CEO Lynnette Kelly and Chief Education Officer Ritta McLaughlin will participate in an upcoming town hall meeting hosted by the National Association of State Treasurers (NAST). Town hall meetings strengthen relationships between the MSRB and municipal market stakeholders and demonstrate the organization’s commitment to engaging with stakeholders in support of a fair and efficient municipal market. Learn more about upcoming outreach events.

New Publications and Resources

Dealer Participation and Concentration in Municipal Securities Trading This MSRB report analyzes changes and trends in the customer trading activity of municipal securities dealers. Read the report.

2018 MSRB Fact Book The MSRB Fact Book offers a free and comprehensive reference for historical trade statistics on a quarterly and yearly basis. The reports encompass information on nearly every trade reported to the MSRB by dealers since 2005 on various types of municipal issues and trades.  More recent reports include statistics on continuing disclosure and primary market documents, and variable rate resets submitted to the MSRB. Read the Q1, 2019 statistical update.

Resources Related to 2019 Municipal Securities Examination Priorities The MSRB has prepared this resource for dealers and municipal advisors registered with the MSRB. This resource highlights select MSRB rules, interpretive guidance and resources that correlate with municipal securities topics identified as 2019 examination priorities by the Office of Compliance Inspections and Examinations (OCIE) of the U.S. Securities and Exchange Commission (SEC) or the Financial Industry Regulatory Authority, Inc. (FINRA).