MSRB Board Considers Proposals to Improve Transparency in the Municipal Bond Market

At their quarterly meeting, the MSRB Board of Directors approved an operating plan and budget and considered several proposals related to improved transparency in the municipal bond market. The Board:

• voted to file a proposal requiring municipal securities dealers to disclose the amount of the mark-up on certain same-day principal transactions on retail customers' confirmations;

• examined comments received on a concept release to improve direct purchase and bank loan disclosures to investors by municipal securities issuers (the Board determined that it "will not pursue rulemaking at this time");

• determined that it will file amendments to MSRB Rules G-8 and G-9 on recordkeeping and retention, and to MSRB Rule G-10 on delivery of the investor brochure with the SEC;

• determined that it will extend, as relevant, to municipal advisors the existing guidance for dealers under MSRB Rule G-32 regarding the use of electronic media;

• determined that it will file an amendment to MSRB Rule G-34 which details when underwriters and financial advisors must apply for the assignment of a CUSIP number for a new issue of municipal securities; and

• considered the potential addition of third-party market indicators, including yield curves, to the MSRB's Electronic Municipal Market Access (EMMA®) website concluding that the associated benefits for investors and issuers warrants the addition of the third party indicators.