The Securities and Exchange Commission (SEC) has unanimously approved new measures to increase the transparency of the municipal securities market by making information about the market available online.
Unlike investors in corporate securities who have direct access to free company information through the SEC’s EDGAR system, average investors in municipal securities currently have no free and convenient way to get important information about the municipal bonds in which they invest. The rule amendments approved by the SEC designate the Municipal Securities Rulemaking Board (MSRB) as the central repository for ongoing disclosures by municipal issuers. Under a separate MSRB rule change, its Electronic Municipal Market Access (EMMA) system would make these disclosures available to investors in the same manner that the SEC’s EDGAR system does for corporate disclosures. Offering documents, real-time trade prices, and education resources already are available on EMMA at www.emma.msrb.org.
"With liquidity problems of municipal auction-rate securities and rating downgrades of municipal bond insurers contributing to the current credit crisis, the disclosure and transparency of the municipal markets have never been more critical. Municipal securities investors need to know what they own. Now they will no longer have to go to such extensive and expensive lengths to find out," said SEC Chairman Christopher Cox.
Read the SEC final rule.
