MSRB Makes Changes to Municipal Securities Transaction Fees

Date: December 30, 2010

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


Alexandria, VA – The Municipal Securities Rulemaking Board (MSRB) received approval from the Securities and Exchange Commission to increase certain existing fees and impose a new technology fee on trades by dealers in municipal securities. These new and increased fees are required as the MSRB’s expenses have increased significantly, its technology requires capital investment and it has assumed additional regulatory responsibilities as a result of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The changes go into effect January 1, 2011.

The MSRB will establish a new technology fee on municipal securities trades reported to the MSRB. Dealers in municipal securities will be required to pay an assessment of $1.00 per transaction for all sales transactions. The MSRB will use the funds generated by these fees to update, maintain and replace its technology systems. This technology fee is transitional in nature, and the MSRB will review it annually as part of its normal budgetary process to determine whether it continues to be necessary.

Additionally, the MSRB will increase the transaction fees paid by 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 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.