Municipal Securities Rulemaking Board (MSRB)
Candlefocus EditorThe mission of the MSRB is to ensure the fairness and integrity of the municipal securities markets by protecting investors, maintaining market transparency, and promoting the responsibility of broker-dealers who sell and trade in municipal securities. The MSRB also sets best practices to guide market participants in the performance of their responsibilities.
The MSRB was formed in 1975 by the Securities Exchange Act of 1934 when your Municipal Securities Act was enacted. The MSRB have divided its responsibilities between the board members and its three crucial committees: the Market Advisory Committee, the Adjudication Committee, and the Audit Committee.
The Market Advisory Committee is in charge of reviewing current industry trends and making sure that the rules developed by the MSRB are properly enforced. The Adjudication Committee is responsible for hearing and ruling on disciplinary cases regarding violations of MSRB rules and regulations as well as making recommendations to the Board of Directors for any new rules or changes to existing rules. The Audit Committee is responsible for the internal review of MSRB's financial statements, accounting activities, and other internal procedures.
Enforcement of MSRB rules is handled by the Municipal Securities Rulemaking Board Authority (MSRBA). The MSRBA can impose fines, suspend or revoke licenses, and impose other sanctions. The MSRB also cooperates with other enforcement arms for investigations and prosecutions related to MSRB rules violations.
The MSRB has established a number of regulatory initiatives to promote market transparency, such as the Electronic Municipal Market Access (EMMA) program. EMMA provides investors, reporters, and other market participants with unedited public information such as last sale prices and new-issue offerings, helping all investors make informed investment decisions.
The MSRB also offers education programs to investors and issues recommended best practices to brokers and dealers in order to ensure compliance and safeguard investors. The MSRB continues to take measures to ensure that municipal securities market is a safe and transparent marketplace.