MSRB Requests Feedback on Fiscal-Year 2014 Priorities

The Municipal Securities Rulemaking Board wants feedback from the public on the top regulatory and other priorities that it should address in its next fiscal year, which begins Oct. 1.

The MSRB issued a release Tuesday, asking market participants to highlight issues they think need attention in fiscal-year 2014, including those related to market transparency, outreach efforts and regulation of dealers and municipal advisors.

Comments are due March 29.

"Public input assists the MSRB in prioritizing ongoing work on current initiatives and identifying additional market concerns or issues that should be considered," MSRB executive director Lynnette Kelly said in release. "This is an opportunity for market participants and others to contribute to our agenda-setting process."

In a related regulatory notice, the board said the next fiscal year's planning process, currently underway by the board of directors, will take into account market risks and trends, enforcement actions, new municipal market products, the conduct of municipal professionals and the information needs of investors and state and local governments.

The board requested market participants provide as much detail as possible about issues that need addressing.

Specifically, the MSRB asked how its education materials to investors, state and local governments, municipal advisors and dealers could be improved. It also wants to know if changes should be made to the format or location of market outreach events.

In addition, the board asked if any significant market issues could be addressed through new educational materials, webinars or other efforts.

The board also said it will also assess comments that market participants have submitted to it about its rule book, which was opened for public comment in December.

The bulk of comments, most of which were received late last month, called for MSRB rules to be harmonized with those of other agencies, such as the Financial Industry Regulatory Authority. Comment letters also urged the MSRB to improve the EMMA system, analyze the costs associated with rules and clarify regulatory language.

Participants said lack of clarity in rules, particularly with fair-pricing and fair-dealing rules, makes compliance difficult. They noted that examination officials sometimes interpret rules differently and have varying expectations.

The fiscal-year 2014 assessment will also include a review of the initiatives outlined in the board's "Long-Range Plan for Market Transparency," published in February 2012.

The plan, which the MSRB said could take five to seven years to implement, calls for development of "EMMA 2.0," an enhanced web-based system that will make more market information available.

EMMA 2.0 will also include a new real-time pricing system, new data graphing tools, better search functions and professional, paid accounts providing customized data feeds, according to the plan.

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Law and regulation Washington
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