MSRB Statement by Board Chairman John Lawlor Regarding SEC Chairman Christopher Cox

Date: July 19, 2007

Contact:           Lynnette Kelly Hotchkiss, Executive Director
                       (703) 797-6600

Statement by John Lawlor, Chairman of the Municipal Securities Rulemaking Board (MSRB), Regarding SEC Chairman Christopher Cox's July 18, 2007 Speech Entitled "Integrity in the Municipal Market"

Alexandria, VA - We read with interest Chairman Christopher Cox's statement. "We will continue to review his speech and his proposals regarding legislation." We hope to meet soon with the SEC to understand the details of the potential legislative changes broadly outlined by the Chairman.

We welcome the plans Chairman Cox announced for additional SEC review of the municipal market, including Rule G-37 and the Nationally Recognized Municipal Securities Information Repositories (NRMSIRs), and expect to consider the results carefully in fulfilling the MSRB's rulemaking responsibilities.

Finally, the MSRB looks forward to continuing to work with the SEC, the Congress, municipal issuers, and all market participants in reviewing ideas for improvements in the municipal market.

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.