MSRB

There is absolutely no good reason why, 10 years after Dodd-Frank was enacted, the MSRB has not rationalized its fee structure.

Primary market COVID-19 disclosures increased to 2,926 filings from 2,529 the week prior. Continuing disclosures increased to 6,107 filings from 5,677.

No real clear, universal definition of ‘green’ exists and it is complicating investor understanding of the market.

Municipalities are making draws on reserves as revenues fall due to the pandemic.

A sticking point for dealers is the MSRB's proposal to reserve two seats on its board for municipal advisors.

The MSRB is seeking to reduce the size of its board to 15 members and to extend the "cooling off" period for bankers and muni advisors seeking seats as members of the public.

State and local governments have increasingly filed COVID-19-related disclosures to the market, but only about 931 issuers out of roughly 40,000 have filed over 1,500 material event notices and continuing disclosures since the pandemic began.

Dealer groups supported the MSRB's move, saying it would remove a disincentive to use the Fed's short-note program.

Issuers say the Treasury's intent was to open up COVID-19 funds for public safety costs.

An injunction was issued against U.S. Immigration and Customs Enforcement, which could impact a prison's facility's revenue bonds.

In March 2020, spreads skyrocketed to 97 basis points before dropping slightly to 88 basis points in April 2020.

The MSRB also said more municipalities have begun referencing CARES Act loans in their disclosures.

SIFMA released two new model documents to reflect the senior managing underwriter’s role to make standard disclosures as well as its own dealer transaction specific disclosures to keep up with changes to the MSRB's fair dealing rule.

More issuers are missing bond payments and deadlines for filing annual financials; the Roman Catholic Church of the Archdiocese of New Orleans filed for bankruptcy partially blaming COVID-19, affecting $41 million of bonds.

BB&T failed to submit accurate minimum denomination and maximum interest rates to the MSRB’s Short-Term Obligation Rate Transparency (SHORT) System in 3,710 instances, FINRA found.

The National Federation of Municipal Analysts asked the Municipal Securities Rulemaking Board to create a separate category for COVID-19 related disclosures.

Mark Kim, MSRB chief operating officer, predicted even more disclosures in the near future.

Many of the MSRB’s past and current public board members have had significant connections with regulated dealers or banks, the unions said.

The MSRB is looking to cut back on repetition in its broker-dealer suitability rules, which is a welcome change for the dealer community as Reg BI goes into effect in less than two months.

Broker-dealers oppose a proposed change to MSRB's governance rule that would reserve two seats for municipal advisors.