Press Releases

Release Date: July 18, 2007
Contact:
Katrina Keller, 646-637-9281, kkeller@sifma.org

SIFMA’s Lackritz On SEC Chairman Cox’s Municipal Securities Speech

Washington, D.C., July 18, 2007 – The Securities Industry and Financial Markets Association (SIFMA) today issued the following statement from CEO Marc Lackritz on SEC Chairman Cox’s speech relating to the municipal securities market.

“The municipal bond market is a quintessentially American success story.  It has financed the building of roads, bridges, hospitals and schools that have made America great, while helping state and local governments effectively manage their balance sheets and budgets.  It has also provided a safe haven of steady, consistent performance for millions of investors.  We welcome Chairman Cox's review, and look forward to working with the SEC, issuer groups, investors and bond lawyers to ensure that this critical market continues to thrive.”

Municipal Securities Market Facts:

• $2.5 trillion of municipal securities outstanding at end of 1Q07
• Historic default rate on municipal bonds approximately 0.1% from 1970 to 2006
• Long-term municipal issuance from 2000 to 2006 totaled $2,383.2 billion
• Municipal issuance reached a record of $408 billion in 2005
• Municipal issuance was $387 billion in 2006, second highest issuance year on record
• Average daily trading volume also reached a record in 2006, with $22.5 billion
• Issuance for the first 6 months of 2007 is nearly 30% above same period last year ($229 billion versus $178 billion)
• Average daily trading volume year to date in 2007 is $26.2 billion
• SIFMA is working with the Municipal Securities Rulemaking Board on an MSIL/Access system that is similar to EDGAR for new issue disclosure.
• Additionally, SIFMA has been working with the Muni Council on dissemination of continuing disclosure information. 

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The Securities Industry and Financial Markets Association brings together the shared interests of more than 650 securities firms, banks and asset managers. SIFMA's mission is to promote policies and practices that work to expand and perfect markets, foster the development of new products and services and create efficiencies for member firms, while preserving and enhancing the public's trust and confidence in the markets and the industry. SIFMA works to represent its members’ interests locally and globally. It has offices in New York, Washington D.C., and London and its associated firm, the Asia Securities Industry and Financial Markets Association, is based in Hong Kong.