MSRB Publishes Report on Self-Regulation in the Municipal Securities Market

Date: January 22, 2018

Contact: Jennifer A. Galloway, Chief Communications Officer


Washington, DC – As the self-regulatory organization (SRO) created by Congress to promote a fair and efficient municipal securities market, the Municipal Securities Rulemaking Board (MSRB) today released a new report summarizing the history of self-regulation in the U.S. capital markets and detailing the advantages of the MSRB’s distinctive SRO model.

“Oversight of the municipal securities market has been grounded in the concept of self-regulation for over 40 years,” said MSRB Executive Director Lynnette Kelly. “Government provides strong oversight, and market practitioners contribute expert insight into the practical realities of implementing regulatory objectives. The MSRB’s distinctive SRO model has enabled the municipal market to grow into a $3.8 trillion capital market that has earned the confidence of investors, issuers and market professionals.”

Since the 1930s, Congress, the Securities and Exchange Commission and others have periodically re-examined and reaffirmed or strengthened the SRO model, and the subject of self-regulation is again garnering attention as policymakers and others review the federal regulatory framework in the wake of changes in financial markets regulation under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.  

“We are contributing our perspective in the ongoing dialogue about self-regulation in the U.S. capital markets,” Kelly said. “We think that the MSRB – while committed to continuous self-assessment and improvement – is a particularly successful embodiment of the SRO model.”

As part of the organization’s long-term strategic vision, the MSRB is leveraging its unique perspective and expertise as an SRO by publishing additional reports, commentary and market analysis. 

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.