MSRB approves guidance at first quarterly meeting of FY 2027
The Municipal Securities Rulemaking Board at its recently concluded quarterly meeting gave the go-ahead for interpretative guidance, which is designed to clarify dealer obligations under two MSRB rules, to be filed for approval with the Securities and Exchange Commission.
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The two MSRB rules are Rule G-32, which pertains to disclosures in connection with primary offerings, and Rule G-34, which, among other things, requires underwriters of a new issue to communicate information to the New Issue Information Dissemination Service, an automated, electronic system run by the Depository Trust & Clearing Corporation.
The meeting, held Oct. 21 and Oct. 22, marked the board’s first quarterly meeting of fiscal year 2027. The quarterly meeting also marked Alexander Chilton’s first as
“As we advance our retrospective rule review process to modernize MSRB’s rule book, we must ensure our rules evolve with the market without losing sight of our core principles to protect investors, issuers and the public interest,” Chilton said in an Oct. 22 MSRB press release.
“At the same time,” the board chair said, “with the continued growth in municipal market volume and enhancements in AI, it’s critical that MSRB continuously upgrade the technology systems that receive, store and distribute that data to enhance market transparency for market participants, while also being responsible stewards of MSRB resources.”
In connection with MSRB Rules G-32 and G-34, the board at the meeting approved the filing of the interpretive guidance with the SEC “to clarify the submission processes and timelines associated with Form G-32 and new issue information required under Rule G-34,” the press release said.
With regard to MSRB Rule G-27, the board discussed the status of the MSRB’s dealer supervision modernization initiative, “including consideration of approaches to potential further actions based on stakeholder feedback and municipal market-specific needs,” the release said.
In relation to rulebook harmonization, the board discussed the Financial Industry Regulatory Authority’s request for comment on potential amendments to FINRA Rule 2210, on communications with the public, as an early assessment on the impact to MSRB Rule G-21, on advertising by dealers, and MSRB Rule G-40, on advertising by municipal advisors.
The board also continued its retrospective review of MSRB Rule G-37, which concerns political contributions and related prohibitions on engaging in municipal securities business and municipal advisory business, in light of the
With regard to its municipal advisor retrospective rule review, the board reviewed comments submitted in response to the MSRB’s request for comment regarding the potential retirement of certain financial advisory terminology. Based on stakeholder feedback, the board deferred proceeding with rule amendments to retire such terminology until a later stage of its retrospective rule review, according to the release.
During the meeting, the board also received several updates regarding market transparency and public accountability initiatives, the release said.
Among them was “an update on MSRB’s ongoing technology transformation and the phase II systems modernization project, which includes enhancements to cybersecurity, along with upgrades to MSRB’s technology systems that receive, store and distribute data and documents in a secure, efficient and timely manner,” according to the release.
The meeting also included an update on MSRB’s stakeholder engagement efforts “and board discussion around further engagement opportunities with stakeholders throughout the next fiscal year,” the release said.
The board also received an update on MSRB research and analysis concerning the muni market as well as upcoming research, according to the release.
