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Municipal Securities Rulemaking Board Implements All-Electronic Standard for Official Statements

Posted on: Monday, 1 June 2009, 10:33 CDT

Documents Are Available on the MSRB's EMMA Website

ALEXANDRIA, Va., June 1 /PRNewswire/ -- The Municipal Securities Rulemaking Board (MSRB) today implemented an all-electronic standard for free public access to primary market disclosure documents and transaction price information for the municipal securities market. All official statements and advance refunding documents associated with new bond offerings will be filed electronically and posted on the MSRB's Electronic Municipal Market Access (EMMA) website at www.emma.msrb.org and are freely available to the public for immediate access.

"We have made history by creating an electronic standard for municipal bond documents," said Ronald A. Stack, Chair of the MSRB. "The MSRB is ahead of the curve on price transparency and document disclosure by making both available through a single, integrated website tailored to the individual investor," he said. "The MSRB intends to continue to protect investors by ensuring that they have the critical information they need to assess municipal securities."

MSRB Rule G-32, which goes into effect today, requires municipal securities underwriters to submit electronic official statements and advance refunding documents to EMMA. Electronic submission of these documents previously was voluntary.

The MSRB has been operating EMMA on a pilot basis since March 2008 and today the municipal bond information system becomes a permanent repository for electronic disclosure documents, official statements and trade data. Also today, investors will for the first time have free access to certain continuing disclosure documents submitted by municipal bond issuers on a voluntary basis, and, beginning July 1, 2009, on a mandatory basis. Over time, EMMA will be populated by a growing library of continuing disclosure documents that will complement the vast warehouse of existing official statements and other data on EMMA. In addition to disclosure documents, EMMA houses real-time and historical trade data for municipal bonds, interest rates and auction results for auction rate securities, interest rates for variable rate demand obligations, daily market statistics and useful educational material about municipal bonds.

Through EMMA, the MSRB seeks to improve transparency in the municipal securities market and offer resources to investors. Today's implementation of the all electronic standard for primary market documents, along with a companion pilot system for the submission of continuing disclosure documents, significantly increases the volume of document submissions to EMMA. The MSRB recognizes that these changes are new to the issuer and dealer communities and is working to make the transition as smooth as possible. The MSRB is providing ongoing training and is committed to resolving issues related to EMMA as they arise.

The Municipal Securities Rulemaking Board (MSRB) was established in 1975 by Congress to develop rules regulating securities firms and banks involved in underwriting, trading, and selling municipal securities. The Board also operates information systems, including the Electronic Municipal Market Access (EMMA) system, designed to promote transparency and access to information. The MSRB also conducts extensive outreach and education. The Board is composed of members from the municipal securities dealer community and the public, and is charged with protecting investors and promoting a fair and efficient market. The Board is a self-regulatory organization that is subject to oversight by the Securities and Exchange Commission.

SOURCE Municipal Securities Rulemaking Board (MSRB)

Source: PR Newswire

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