MSRB gets nod from SEC to establish electronic disclosure system in 2009

By Sheri Kasprzak

New York, Dec. 8 - The Municipal Securities Rulemaking Board Monday received approval from the Securities and Exchange Commission to establish its long-planned electronic disclosure service, said a statement from the MSRB.

The Electronic Municipal Market Access system will make its debut on July 1, 2009, according to the statement.

"This service will receive electronic submissions of, and will make publicly available on the EMMA website, continuing disclosure documents and related information from issuers, obligated persons and their agents pursuant to continuing disclosure undertakings entered into consistent with Exchange Act Rule 15c2-12," the MSRB statement said.

"Also, on July 1, 2009, related amendments to Rule 15c2-12 will go into effect."

Before the system was developed, municipals investors were forced to go through one of four Nationally Recognized Municipal Securities Information Repositories - and pay often significant fees - for information about a particular municipal bond. The EMMA system, according to both the MSRB and the SEC, will provide this information at no cost, much like the SEC's Edgar system.

"For the first time, millions of individual investors in municipal bonds will have free and instant access to information about their investments, similar to the way they can obtain information about public companies," SEC chairman Christopher Cox said in an SEC statement.

"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."

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