Disclosure on tap at Fixed Income Market Structure Advisory Committee

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The Securities and Exchange Commission's Fixed Income Market Structure Advisory Committee will discuss the content and timeliness of municipal issuer disclosures at its meeting next week.

The SEC on Thursday announced the agenda for FIMSAC’s July 29 meeting. While past FIMSAC meetings have discussed muni issues, most discussion has been heavier on the corporate debt side. The committee formed in late 2017 to provide the SEC with an increased understanding of the “efficiency, transparency, and effectiveness” of the fixed income markets.

The meeting will begin at 9:30 a.m., but of particular interest to the muni market is the scheduled 1:00 p.m. discussion of municipal disclosure. The content and timeliness of muni issuer disclosure is a stated interest of SEC Chair Jay Clayton, who has said he wants regulators to work within the constraints of existing law to promote improved awareness of how stale some issuer disclosures are.

Clayton asked the SEC’s Office of Municipal Securities and the Municipal Securities Rulemaking Board to work on the issue.

Discussing the topic will be Municipal Market Analytics President Tom Doe; Sheila May of GW&K Investment Management; Tom McLoughlin of UBS; Tim Schaefer, deputy treasurer at the California State Treasurer’s Office; City of Alexandria, Virginia, Finance Director Kendel Taylor; and James Wallin of Alliance Bernstein.

The MSRB has discussed using a "counter" on EMMA so stakeholders could know how long it has been since an issuer has filed a financial statement, while some market participants have said they want the SEC to provide issuers a “safe harbor” to file unaudited financial disclosures in hopes of speeding up the process of making information public.

Another topic of potential interest to the market on the agenda is a draft recommendation on certain principal transactions with advisory clients, a discussion that includes MSRB Chief Market Structure Officer John Bagley.

FIMSAC is also slated to discuss credit ratings and receive an update from the subcommittees in charge of technology, electronic trading, and bond funds.

The meeting is scheduled to adjourn at 3:30 p.m.

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Municipal disclosure SEC regulations MSRB rules Securities law SEC MSRB Washington DC