January 12, 2017

Muni ComMUNIcations - Legislative, regulatory and tax news for municipal securities

HIGHLIGHTS

MSRB Net Assets of $70M in FY-2016 Almost Triple Those of 2010
The Municipal Securities Rulemaking Board’s annual report and financial statements show fiscal year 2016 net assets of $69.3 million, nearly triple those in 2010. The MSRB’s financial reserve target is 12 months of operating expenses plus three-times annual capital needs, according to MSRB executive director Lynnette Kelly. In July 2016, when reserves exceeded this mark, the regulator issued a $5.5 million rebate to dealers that had paid underwriting, transaction, or technology fees. SIFMA has made past requests that the MSRB review its fee structure and budgeting process, with SIFMA’s Leslie Norwood stating that “among other things, we feel concerned about the amount of financial reserves the MSRB has charged the industry to fund.”
Bond Buyer Article
MSRB Annual Report 

MSRB Requests Comment on Modernization of Customer Account Transfers
The MSRB is seeking comment on draft amendments to modernize MSRB Rule G-26, on customer account transfers. The proposed amendments create a uniform customer account transfer standard across brokers and dealers dealing with municipal securities in order to promote market efficiency and reduce risk. Comments should be submitted no later than February 17th, 2017.
MSRB Request for Comment 

MSRB Publishes Upcoming Municipal Securities Offerings on EMMA
On January 9, the MSRB began offering an additional issue calendar to its Electronic Municipal Market Access (EMMA) website. The new calendar lists municipal bonds scheduled for sale, as well as pricing of recently sold issues. The change is aimed at enhancing the availability of information within the dynamic tool, as well as helping state and local governments considering issuing new municipal bonds to better inform timing on new bond issues and compare prices.
MSRB Press Release 

MSRB Seeks Board of Directors Applicants
The Municipal Securities Rulemaking Board is now accepting applicants for the Board of Directors, which sets the strategic direction of the self-regulatory organizations, in addition to making policy decisions, authorizing rulemaking and market transparency initiatives, and overseeing operations of the organization. New Board members, which will include three public and two regulated-entity positions, will begin their four-year terms on October 1, 2017.
MSRB Press Release

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SIFMA NEWS

SIFMA Releases U.S. Municipal Credit Report, Third Quarter 2016
According to Thomson Reuters, long-term public municipal issuance volume totaled $108.4 billion in the third quarter of 2016, a decline of 9.2 percent from the prior quarter ($119.5 billion) but an increase of 25.8 percent year-over-year (y-o-y) ($86.1 billion). Including private placements ($3.8 billion), long-term municipal issuance for 3Q'16 was $112.2 billion. Year to date ending September 30, municipal issuance totaled $323.4 billion, well above the ten-year average of $276.5 billion. The municipal bond credit report is a quarterly report on the trends and statistics of U.S. municipal bond market, both taxable and tax-exempt. Issuance volumes, outstanding, credit spreads, highlights and commentary are included.

2016: SIFMA Releases Year in Review
Capital markets recognize the best ideas and enterprises and propel them forward. As the voice for the U.S. securities industry, this retrospective chronicles our members’ work advocating for their effectiveness and efficiency over the past year. On behalf of SIFMA’s Board of Directors and the entire Association staff, we look forward to continuing our work with you to finance America’s future.

Interactive Database: Capital Markets in Your State
View and download state-by-state data on corporate, equity and municipal issuance; top public companies; securities industry employment; and more. We invite you to explore this interactive database to find the companies and municipalities in your state that are accessing the capital markets to drive economic growth.

 

EVENTS

Announcing the T+2 Settlement Conference: March 29, New York Marriott Downtown
The industry is moving to a shorter settlement cycle from trade date plus three business days (T+3) to T+2 in the U.S. for most securities with a target date of September 5, 2017. The instruments subject to the shortened settlement cycle include corporate and municipal bonds, equities, unit investment trusts, and financial instruments comprised of these products. Join us on March 29, 2017, at the T+2 Settlement Conference in NYC for a deep dive into the next phase of the industry's migration to T+2. This conference will address behavioral, systems, operational and regulatory changes necessary to meet the T+2 implementation date. Reserve your seat today!

Watch Video from The Capital Markets Conference
SIFMA’s 2016 Annual Meeting, The Capital Markets Conference, convened leaders of the financial-services industry in our nation's capital for one-on-one conversations, in-depth discussions and expert insights on the state of our capital markets and how they can drive capital formation, job creation and economic growth. Watch video, read the blogs, download the research reports and see more highlights from the leading event for capital markets professionals.

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