MSRB Files Fee Proposals with SEC

Date: September 30, 2010

Contact:  Jennifer A. Galloway, Chief Communications Officer
              (703) 797-6600


Alexandria, VA The Municipal Securities Rulemaking Board (MSRB) today filed with the Securities and Exchange Commission (SEC) proposals that would raise revenue by increasing certain existing fees and imposing a new technology fee on trades by municipal securities dealers. These new and increased fees are required as the MSRB’s expenses have increased significantly, its technology requires capital investment and it is assuming additional regulatory responsibilities as a result of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The changes would go into effect January 1, 2011.

One of the proposals increases the existing subscription price for two MSRB trade data subscription services and makes other related changes. These services provide subscribers with real-time or delayed trade data through an electronic feed. The proposal increases the subscription fee to the MSRB’s Real-time Transaction Data Subscription Service to $10,000 per year from $5,000 per year, and raises the price for the MSRB’s Comprehensive Transaction Data Subscription Service to $5,000 per year from $2,000 per year. The proposal also would end the MSRB’s free daily transaction report service. Trade data will remain available for free on the MSRB’s Electronic Municipal Market Access (EMMA) website.

The second proposal filed with the SEC today would establish a new technology fee on municipal securities trades reported to the MSRB. Municipals securities dealers would be required to pay an assessment of $1.00 per transaction for all sales transactions. The MSRB would use the funds generated by these fees to update, maintain and replace its technology systems.

Additionally, this proposal would increase, for the first time in 10 years, the transaction fees paid by municipal securities dealers from $.005 per $1,000 par value to $.01 per $1,000 par value on most municipal securities sales transactions reported to the MSRB.    

The MSRB protects investors, state and local governments and other municipal entities, and the public interest by promoting a fair and efficient municipal securities market. The MSRB fulfills this mission by regulating the municipal securities firms, banks and municipal advisors that engage in municipal securities and advisory activities. To further protect market participants, the MSRB provides market transparency through its Electronic Municipal Market Access (EMMA®) website, the official repository for information on all municipal bonds. The MSRB also serves as an objective resource on the municipal market, conducts extensive education and outreach to market stakeholders, and provides market leadership on key issues. The MSRB is a self-regulatory organization governed by a 21-member board of directors that has a majority of public members, in addition to representatives of regulated entities. The MSRB is overseen by the Securities and Exchange Commission and Congress.