Editing Municipal Securities Rulemaking Board

{{Infobox organization
| name = Municipal Securities Rulemaking Board
| logo = Municipal Securities Rulemaking Board logo.svg
| logo_size =
| logo_alt =
| logo_caption = 
| logo_padding =
| image = 
| image_size =
| image_alt =
| image_caption = 
| type = Self-regulatory governmental organization
| fields = [[Financial services]]
| founded = {{start date and age|1975|06|04}} in [[Washington, D.C.|Washington]], [[United States]]
| founder = [[United States Congress]]
| location_city = [[Washington, DC]]
| location_country = [[United States]]
| key_people = 
| products = [[Financial regulation]] of municipal bonds 
| services = 
| parent_organization =
| website = {{URL|http://www.msrb.org/}}
}}
The '''Municipal Securities Rulemaking Board''' ('''MSRB''') is a [[United States]] [[Self-regulatory organization|self-regulatory financial organization]] that writes investor protection rules and other rules regulating [[broker-dealer]]s and [[bank]]s in the [[municipal securities|municipal securities market]].  This including tax-exempt and taxable [[municipal bond]]s, municipal notes, and other securities issued by states, cities, and counties or their agencies to help finance public projects or for other public policy purposes.

== History ==
The MSRB was created by the Section 15B of the [[Securities Exchange Act of 1934]] (as amended by the [[Securities Acts Amendments of 1975]], {{USPL|94|29}}, and codified at {{USC|15|78o-4(b)}}) to create a mechanism for the regulation of municipal securities as well as [[broker]]s, [[broker-dealer|dealers]], and banks in the municipal securities business.<ref>{{cite book|title=Broker-Dealer Law and Regulation|first1= 	Norman S.|last1=Poser|first2=James A.|last2=Fanto|year=2011|pages=4–24|publisher=Aspen Publishers|isbn=9780735567856|url=https://books.google.com/books?id=6kqOjOzmMnUC&pg=SA4-PA24}}</ref><ref>{{cite book|title=Economics and Finance for Engineers and Planners|first=Neil S.|last=Grigg|year=2010|page=233|publisher=[[American Society of Civil Engineers|ASCE Publications]]|isbn=9780784472293|url=https://books.google.com/books?id=HyPmCj5XGCMC&pg=PA223}}</ref>

The [[Dodd–Frank Wall Street Reform and Consumer Protection Act]] of 2010 broadened the MSRB's rulemaking authority to also regulate so-called municipal advisors, which include financial advisors, [[swap (finance)|swap]] advisors, brokers of [[guaranteed investment contract]]s and other market participants that advise on the issuance of municipal securities and provide certain other types of advice to state and local governments, public pension funds and other municipal entities on municipal derivatives, investment strategies and other financial matters. {{As of|March 2013}}, since the SEC has not released the definition of "municipal advisor", the MSRB's rules in this regard are suspended and there is considerable concern in the industry as to whether underwriters and/or other regulated professionals may be viewed as municipal advisors, thereby having the related fiduciary duties. The MSRB's investor protection rules will be extended to protect municipal entities as well.

== Mandate ==
Like the [[Financial Industry Regulatory Authority]] (FINRA), the MSRB is a self-regulatory organization that is subject to oversight by the [[Securities and Exchange Commission]] (SEC).<ref name=handbook/> The MSRB is authorized to create rules designed "to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, and processing information with respect to, and facilitating transactions in municipal securities, to remove impediments to and perfect the mechanism of a free and open market in municipal securities, and, in general, to protect investors and the public interest."<ref name=creation>{{cite web|title=Creation of the MSRB|author=Municipal Securities Rulemaking Board|accessdate=30 March 2014|url=http://www.msrb.org/About-MSRB/About-the-MSRB/Creation-of-the-MSRB.aspx}}</ref> While the MSRB sets standards for broker-dealers, banks, and municipal advisors, MSRB rules do not apply to issuers of municipal securities or other municipal entities, which Congress generally exempted from most provisions of the federal securities laws (such as the [[Securities Act of 1933]], the [[Securities Exchange Act of 1934]] and the [[Investment Company Act of 1940]]) otherwise applicable to private-sector issuers of corporate and other types of securities.<ref name=handbook>{{cite book|title=The Handbook of Municipal Bonds|first1=Sylvan G.|last1=Feldstein|first2=Frank J.|last2=Fabozzi|authorlink2=Frank J. Fabozzi|year=2011|page=319|publisher=[[John Wiley & Sons]]|isbn=9781118044940|url=https://books.google.com/books?id=_c6jDRFGpo8C&pg=PT319}}</ref> MSRB rules are enforced by various other federal regulatory organizations, including the SEC, FINRA, the [[Federal Reserve System]], the [[Federal Deposit Insurance Corporation]] (FDIC) and the [[Office of the Comptroller of the Currency]] (OCC).<ref>{{cite web|title=Enforcement of MSRB Rules|author=Municipal Securities Rulemaking Board|accessdate=28 April 2014|url=http://www.msrb.org/Municipal-Bond-Market/How-the-Market-is-Regulated/Enforcement-of-MSRB-Rules.aspx}}</ref>

Among its investor protection rules, the MSRB is best known for adopting the first nationwide [[Pay to Play]] rule, known as Rule G-37, designed to eliminate the use of political contributions to obtain municipal underwriting business from state and local governments.  The MSRB's investor protection rules also apply to state-operated [[529 plan]]s marketed by broker-dealers, as well as to the underwriting, sales and trading of [[Build America Bonds]] and other taxable municipal obligations. In addition, the MSRB operates the [[Electronic Municipal Market Access]] (EMMA) system, which provides free on-line access to comprehensive municipal securities disclosure documents, trade prices, interest rate information, and market statistics.

== Structure ==
The MSRB is composed of members from regulated broker-dealers and banks as well as from the public. Beginning on October 1, 2010, the MSRB will be recomposed to consist of a majority of independent public members and to include representatives of municipal advisors.

== See also ==
* [[Financial Industry Regulatory Authority]] (FINRA)
* [[Securities Investor Protection Corporation]] (SIPC)
*[[Securities market participants (United States)]]

== References ==
{{Reflist}}

== External links ==
* [http://www.msrb.org/ Municipal Securities Rulemaking Board]
* [http://emma.msrb.org/ Electronic Municipal Market Access (EMMA) system]

{{Presidency of Gerald Ford}}
{{Authority control}}

[[Category:1975 establishments in the United States]]
[[Category:Financial regulatory authorities of the United States]]
[[Category:Self-regulatory organizations]]
[[Category:Organizations established in 1975]]
[[Category:Local government finance]]