MSRB holds second stakeholder meeting on budget process

The Municipal Securities Rulemaking Board held its second stakeholder meeting on Tuesday, its final engagement with the market on its now discarded rate card fee model and budget process.

The first of the two meetings was conducted by those from which the MSRB derives its fees and centered on the rate card model. This second meeting opened the floor up to the MSRB’s budget process more generally and was attended in person by a wider swath of the market.

“The goal of the meeting was to provide our stakeholders with an in-depth understanding of the MSRB’s budget and technology and to listen to their important perspectives on these issues,” said Mark Kim, chief executive officer of the MSRB. “We welcomed the opportunity to come together for a robust discussion and look forward to continued engagement with our stakeholders as we advance the MSRB’s mission of protecting and strengthening the municipal securities market.”

In attendance were representatives from the American Securities Association, Bond Dealers of America, Government Finance Officers Association, Investment Company Institute, National Association of Municipal Advisors, National Federal of Municipal Analysts, in addition to the entire MSRB board, members of the Finance Committee and MSRB senior staff.

According to Kim, the meeting saw much of the market engaged in thoughtful discussion and went over the time allotted by an hour.

“There was a lot of interaction, I learned some things from it and I think others did too,” said Michael Decker, senior vice president of federal policy and research at the Bond Dealers of America. “I’ve been lobbying the MSRB for a long time and this is the first time in my memory that they’ve ever done something like this and really opened up about their finances.”

The Securities and Exchange Commission was the one to suspend the MSRB rate card fee model and any response will have to be done in close collaboration between the MSRB and the SEC. Nothing is on the calendar as of yet.

“We thank our stakeholders for a productive meeting,” said Meredith Hathorn, chair of the MSRB’s board of directors. “This was the second of two meetings that the MSRB committed to hosting as part of our continued commitment to transparency and dialogue. It was equally important and constructive for both MSRB and all participating stakeholders to come to the table and hear the diversity of perspectives.”