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MSRB Report Shows Steady Increase in Municipal Bond Continuing Disclosure Documents

The Municipal Securities Rulemaking Board (MSRB) has released its first report summarizing the submission of continuing disclosure documents since its Electronic Municipal Market Access (EMMA) website became the official repository for such documents in July 2009.

“The collection of municipal market continuing disclosure documents on the EMMA system fosters greater transparency by providing investors ready access to information provided by issuers."- MSRB Executive Director Lynnette Kelly Hotchkiss

The report, entitled, “Continuing Disclosure Statistical Summary,” provides a breakdown of the number and type of continuing disclosure documents for municipal bond issuers available on the EMMA website.  These documents include financial and operating reports, audited financial statements and notices of material events. 

Highlights of the report include:

• Between July 2009 and June 2010, the MSRB received 258,162 continuing disclosure documents, with fairly steady month-over-month increases in all types of continuing disclosure submissions.
• Financial and operating disclosures accounted for about 46 percent of all submitted disclosures during the 24-month period.
• March and December have been the busiest months in terms of the number of submissions received, primarily due to sharp increases in submissions of annual financial and operating information as well as audited financial statements occurring approximately six months after September 30 and June 30, which are the fiscal year end dates for many municipal issuers.
• Nearly 12 percent of all continuing disclosures were submitted by the State of California or its municipalities from July 2009 through June 2011.
• Texas, Florida, New York and Pennsylvania rounded up the top five states in terms of number of disclosures, accounting for ten, seven, six and five percent, respectively.

“The collection of municipal market continuing disclosure documents on the EMMA system fosters greater transparency by providing investors ready access to information provided by issuers,” said MSRB Executive Director Lynnette Kelly Hotchkiss.

“The provision of continuing disclosure documents gives investors a more complete picture of an issuer’s activities. By having access to audited financial statements and other documents, as required by an issuer’s Continuing Disclosure Agreement, investors are better equipped to make informed investment decisions.”

The full report is available for download on the MSRB website.

The Municipal Securities Rulemaking Board has operated under Congressional mandate with oversight by the Securities and Exchange Commission since 1975.  Its mission is to protect investors and issuers of municipal securities by promoting a fair and efficient municipal market though the regulation of securities firms, banks and municipal advisors that engage in municipal securities and advisory activities.