M unicipa l Securitie s rulem ak ing boar d
Fac t Book
The information and data provided in this Fact Book are provided without warranties or representations and on an “as is” basis. The MSRB hereby disclaims all representations and warranties (express or implied), including, but not limited to, warranties of merchantability, non-infringement and fitness for a particular purpose. Neither the MSRB, nor any supplier, shall in any way be liable to any recipient of the information and/or data contained in this Fact Book, regardless of the cause or duration, including, but not limited to, any inaccuracies, errors, omissions or other defects in the information and/or data or for any damages resulting therefrom. Copyright © 2011 Municipal Securities Rulemaking Board
M u n i c i pa l S e c u r i t i e s R u l e m a k i n g B oa r d 2 010 Fac t b o o k
About the MSRB 2010 Fact Book The Municipal Securities Rulemaking Board is pleased to publish the 2010 Fact Book. The Fact Book provides comprehensive and historical statistics on trading patterns in the municipal securities market based on trade information submitted to the MSRB by municipal securities dealers. It also provides statistical information on continuing and primary market disclosure, as well as variable securities rate reset information. In 2010, dealers submitted data on approximately 10.5 million trades, over 140,000 disclosure documents and one million rate resets. The Fact Book includes monthly, quarterly or yearly aggregate market information from 2006 to 2010, and covers different types of municipal issues, trades and rate resets. The MSRB is publishing this data to provide investors, issuers, dealers, regulators and policy makers with historical statistics that can be further analyzed, studied, or reviewed to identify market trends and activity over the last several years. The Fact Book supports the MSRB’s ongoing effort to educate the general public and market participants about the municipal market, and assists the MSRB’s regulatory activities. The 2010 Fact Book includes information about nearly every trade reported to the MSRB by dealers since 20061. The information reflects aggregate trading activity at the end of each trading day as submitted to the MSRB’s Real-Time Transaction Reporting System (RTRS). The MSRB obtains some information on the characteristics of securities traded from Standard & Poor’s Financial Services LLC and CUSIP databases furnished by the CUSIP Service Bureau2. NEW FOR THE 2010 FACT BOOK In addition to the number of interest rate resets included in the 2009 report, this year we have added statistics on the type, frequency and tax status of auction rate securities and variable rate demand obligations resets to the Fact Book. The MSRB began collecting this information from dealers in early 2009 and makes it publicly available on our Electronic Municipal Market Access (EMMA) website at www.emma.msrb.org. Also for the first time, the 2010 Fact Book includes statistics related to continuing disclosure and primary market documents received through the MSRB’s EMMA website. Beginning in July 2009, the MSRB became the only centralized, electronic repository for municipal securities disclosure documents. This vital information includes quarterly and annual financial statements, budgets, changes in accounting standards, notices of material events and other disclosures. The disclosures generally reflect the financial or operating condition of the issuer over time, as well as specific s described in a Rule G-14 interpretive notice from January 2, 2008 (Reporting of Transactions in Certain Special Trading A Situations), some transactions are subject to special conditions indicating that they are not a typical arms-length transaction and possibly a misleading indicator of the market value of a security. These transactions may be excluded from MSRB’s transparency products, including data disseminated through EMMA, but may be included in this report.