MSRB authorizes request for comment on Rule G-3
3 min read
The Municipal Securities Rulemaking Board has approved a request for comment on Rule G-3 on professional qualifications that would add an exemption for municipal advisors forced to requalify their registration with a municipal advisor firm after a two year lapse in their Series 50 exams.
That was approved during the MSRB’s quarterly board meeting that took place on Oct. 26-27, and with it, the board approved another COVID-19 related extension to Rule G-27 on supervision.
“It was really exciting to kick off the first board meeting of our new fiscal year with a new board chair, and also four new board members,” said Mark Kim, chief executive officer at the MSRB, who said the agenda for this year’s first meeting focused squarely on market regulation issues.
The Financial Industry Regulatory Authority recently filed proposed rulemaking with the Securities and Exchange Commission on Rule G-27 to account for remote exams and the board’s recently-approved six month extension takes that into account as it hopes to harmonize rules across markets.
“The MSRB’s self-regulatory focus is squarely on modernizing rules and increasing transparency to protect and strengthen the municipal securities market,” said MSRB chair Meredith Hathorn. “As part of our commitment to upholding the public trust, we are continuously engaging in open dialogue with our stakeholders as we work to deliver on our strategic objectives and give America the confidence to invest in its communities.”
The board also discussed the comments it received as part of its request for comment on Rule G-14, which would reduce the trade reporting window to one minute. The MSRB is coordinating these efforts with the SEC and FINRA, the latter of which also put out a request for comment on a similar proposal, and are in the middle of digesting the many comments they received.
Those conversations will continue for the next few months, Kim said, but these efforts fall into the current regulatory push to look at fixed income markets more broadly, which outside of munis includes FINRA’s efforts in corporate fixed income markets and the SEC’s closer look into treasury markets.
“There’s a pre-trade component, there’s a time-of-trade component and there’s a post-trade component,” Kim said.
Those efforts are also at work in the board’s development of its request for comment on Rule G-47 on time of trade disclosures, which was approved during its previous board meeting in July.
“Strong markets function best when regulations keep pace with evolving technologies and market practices for increasing transparency, efficiency and fairness,” said Kim. “We are actively engaging with stakeholders and fellow regulators on effective solutions to strengthen the structure of the municipal securities market.”
The board also discussed the ongoing work to modernize its EMMA website, which will soon look like the newly revamped MSRB.org site, along with public trust issues, which include roundtable discussions with minority and woman owned business enterprises and veteran owned small business in collaboration with FINRA.
“We believe this joint effort is important for identifying opportunities to foster greater diversity, equity and inclusion in this large and diverse market,” Hathorn said.
