Contact:           Jennifer A. Galloway, Chief Communications Officer
                       (703) 797-6600
                       jgalloway@msrb.org

Alexandria, VA- The Municipal Securities Rulemaking Board (MSRB) today filed a proposed rule change with the Securities and Exchange Commission to eliminate most exemptions related to underwriting assessments for primary offerings of municipal securities.  The filing follows the MSRB's August 2009 announcement that it would change its fee structure to establish a more equitable distribution of fees among dealers and banks active in the municipal securities market and better match MSRB revenues with operating costs.

Beginning December 1, 2009, the MSRB will apply its underwriting assessment of $.03 per $1,000 paid by underwriters of primary offerings that were previously exempt from the assessment.  These securities include those (i) with a par value of less than $1 million, (ii) sold in certain limited offerings or private placements, (iii) that are puttable back to the issuer every nine months or less, such as variable rate demand obligations, and (iv) with a final stated maturity of nine months or less.  Commercial paper will continue to be exempt from the assessment.  The change in assessments will also apply the $.03 per $1,000 assessment rate rather than the current rate of $.01 per $1,000 to all securities with a maturity of less than two years.

"Our fee revenue has become skewed as the volume of primary offerings in notes and other types of exempted offerings has grown while our resources have been devoted to regulatory support of all types of securities," said Lynnette Kelly Hotchkiss, MSRB Executive Director.  "Eliminating exemptions for these offerings will better reflect dealer participation in the market and the focus of our regulatory activities."