MSRB (Municipal Securities Rulemaking Board)
The MSRB is the self-regulatory organization that creates rules governing the municipal securities market, regulating dealers and advisors who buy, sell, and underwrite state and local government bonds.
Exam Tip
MSRB makes rules but does NOT enforce them. FINRA enforces MSRB rules for broker-dealers. Know Rule G-37 (pay-to-play)!
What is the MSRB?
The Municipal Securities Rulemaking Board (MSRB) is an SRO established by Congress in 1975 to protect investors, state and local governments, and the public interest by promoting a fair and efficient municipal securities market.
MSRB Key Facts
| Aspect | Description |
|---|---|
| Established | 1975 (Securities Acts Amendments) |
| Type | Self-Regulatory Organization (SRO) |
| Focus | Municipal securities market |
| Funding | Transaction fees, not taxpayers |
Who the MSRB Regulates
| Entity | Role |
|---|---|
| Municipal Dealers | Firms that buy/sell munis |
| Municipal Advisors | Advisors to state/local governments |
| Bank Dealers | Banks dealing in munis |
What the MSRB Does NOT Do
| Function | Responsibility |
|---|---|
| Enforce Rules | FINRA and SEC enforce MSRB rules |
| Regulate Issuers | States/municipalities self-regulate |
| Set Prices | Market determines pricing |
Key MSRB Rules
| Rule | Requirement |
|---|---|
| Fair Dealing (G-17) | Deal fairly with all parties |
| Suitability (G-19) | Suitable recommendations |
| Fair Pricing (G-30) | Fair and reasonable prices |
| Professional Qualifications (G-3) | Registration requirements |
| Advertising (G-21) | Fair and balanced ads |
| Political Contributions (G-37) | Pay-to-play restrictions |
EMMA (Electronic Municipal Market Access)
MSRB operates EMMA, the free public database for:
- Official statements (prospectuses)
- Trade data and pricing
- Continuing disclosure documents
- Credit ratings
- Real-time trade reporting
MSRB vs. FINRA
| Organization | Primary Focus |
|---|---|
| MSRB | Municipal securities rules |
| FINRA | Broker-dealer regulation + MSRB enforcement |
| SEC | Oversees both MSRB and FINRA |
Study This Term In
Related Terms
Municipal Bond
SecuritiesA municipal bond (muni) is a debt security issued by a state, city, or county to finance public projects, with interest typically exempt from federal income tax.
FINRA
GeneralFINRA (Financial Industry Regulatory Authority) is a self-regulatory organization that oversees broker-dealers and their registered representatives, administering qualification exams and enforcing securities rules.
SEC (Securities and Exchange Commission)
GeneralThe SEC is the U.S. federal agency responsible for enforcing securities laws, regulating securities markets, and protecting investors from fraud and market manipulation.