As my year as Chair of MSRB's Board of Directors comes to a close and as MSRB celebrates 50 years of serving its congressional mandate to protect investors, issuers and the public interest, I would like to share a few thoughts about this vital industry.
I have traveled the country this year attending industry meetings and events and engaging with stakeholders at every turn. If there is one common theme from all these encounters, it's this: the municipal securities market is resilient and stronger than ever before.
I love this industry and everything it does to help make lives better for all Americans. Muni bonds help state and local governments raise capital to build roads, schools, hospitals and so much more across all of our communities. I am proud of the work we collectively do every day to help finance this critical infrastructure, and I am proud of MSRB's efforts to safeguard the integrity of the $4 trillion market that makes it possible.
Serving on MSRB's Board of Directors over the past four years has been a privilege and an honor. MSRB's Board has representation and market expertise from all corners of the industry, including dealers, municipal advisors, issuers, and investors. Each of these stakeholders provides different perspectives that inform and guide MSRB's important work. Given the unique, public purpose of municipal bonds, I believe that the market is best served by having its own regulatory body with a broad range of market experience and expertise on its board. That is exactly what the MSRB strives to be, and we must ensure its continued independence.
An essential element of MSRB's work is to engage with stakeholders from around the country. MSRB recognizes the need to be responsive to the industry's concerns and, following significant belt-tightening this year, we look forward to continued dialogue with our stakeholders as we carry out our statutory responsibilities to protect issuers and investors while fostering innovation, competition and capital formation.
The municipal securities market has been tremendously active over the past few years. The volume of municipal bonds issued in the primary market has grown steadily, reaching a record of $513 billion in 2024. Secondary market trading in these securities has also reached new highs, with 2024 being the third consecutive year of record trade volume. This record-breaking pace has continued into 2025, driven by sustained strong demand from investors.
While record issuance and trade volume are certainly positives for the industry, we have much work to do. Going forward, we are facing a changing regulatory environment, an altered work landscape post COVID-19, the growth of AI and algorithmic trading and shifting market dynamics. The exit of two large underwriters from the industry in 2023 created significant opportunities for smaller players to fill the void. Meanwhile, AI and algorithmic trading are changing how bonds are bought and sold.
Now more than ever, it is important that MSRB remain vigilant and work closely with our stakeholders to monitor these challenges and look for opportunities to evolve and be even more impactful in the years ahead. This includes regulation that reflects the growth of remote offices, rolling out new technology that better serves our constituents, and thinking creatively about how to continue serving our congressional mandate to protect investors and issuers.
Moreover, while our industry remained safe in the Big Beautiful Bill, we must continue to be leaders in educating legislators and others about the value of tax exemption and the importance of the municipal securities market.
As I wind down my year as MSRB Chair, and my four years serving as an MSRB Board member, I want to thank the industry for everything you do to keep this dynamic market evolving and meeting the needs of our nation's communities. It is an honor to be part of all that we build together, and I look forward to continuing to engage with the great leaders of this industry.
