MSRB NOTICE 2009-26 (MAY 29, 2009)

MSRB FILES TO TERMINATE ITS CDINET SYSTEM EFFECTIVE JULY 1, 2009 IN ANTICIPATION OF THE UPCOMING LAUNCH OF THE CONTINUING DISCLOSURE SERVICE OF THE MSRB'S ELECTRONIC MUNICIPAL MARKET ACCESS SYSTEM ("EMMA")

The Municipal Securities Rulemaking Board (the “MSRB”) has filed with the Securities and Exchange Commission (the “SEC”) a proposed rule change to terminate the MSRB’s CDINet system effective July 1, 2009.[1] The CDINet system accepts and disseminates material event notices affecting municipal securities that are submitted by issuers or their agents pursuant to Exchange Act Rule 15c2-12.[2]  

The SEC has previously approved the launch of the permanent continuing disclosure service of the MSRB’s Electronic Municipal Market Access (“EMMA”) system, which will be placed into operation on July 1, 2009[3] and will replace CDINet. The SEC has also approved the launch of the pilot phase of the continuing disclosure service of EMMA (the “continuing disclosure pilot”) effective June 1, 2009.[4] The continuing disclosure pilot permits the voluntary submission and public dissemination of continuing disclosure documents prior to July 1, 2009, the operational date of the permanent continuing disclosure service of EMMA.

The MSRB views electronic submissions of material event notices to the continuing disclosure pilot as having been submitted to the MSRB for purposes of any existing continuing disclosure undertakings entered into consistent with Exchange Act Rule 15c2-12, pursuant to which an issuer or obligated person has undertaken to make such submissions to the MSRB. The MSRB urges, but does not require, submitters currently using the MSRB’s CDINet in connection with their material event notice filings to instead make submissions on or after June 1, 2009 to the continuing disclosure pilot, solely in electronic format, until such time as all submissions must be made to the permanent EMMA continuing disclosure service beginning on July 1, 2009. The MSRB takes no position with regard to whether a submission made to the continuing disclosure pilot that is made publicly available through the EMMA web portal would satisfy any other provisions of existing continuing disclosure undertakings.

 The continuing disclosure pilot of EMMA will accept voluntary submissions of continuing disclosure documents including, but not limited to, items described in Exchange Act Rule 15c2-12.Such items include the following:

  • annual financial information concerning obligated persons;
  • audited financial statements for obligated persons if available and if not included in the annual financial information;
  • notices of certain events, if material; and
  • notices of failures to provide annual financial information on or before the date specified in the written undertaking.

Questions on the termination of the MSRB’s CDINet system may be directed to Leslie Carey, Associate General Counsel, Margaret C. Henry, Associate General Counsel or Ernesto A. Lanza, General Counsel.

May 29, 2009



[1] File No. SR-MSRB-2009-07. Comments on the proposed rule change should be submitted to the SEC and should reference this file number. CDINet is operated as a system of the MSRB’s Municipal Securities Information Library.

[2] Under Exchange Act 15c2-12, an underwriter for a primary offering of municipal securities subject to the rule is prohibited from underwriting the offering unless the underwriter has determined that the issuer or an obligated person for whom financial information or operating data is presented in the final official statement, or a designated agent, has undertaken in writing to provide certain items of information to the marketplace.