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Contacts:          Lynnette Kelly Hotchkiss, Executive Director
                        (703) 797-6600
                        lhotchkiss@msrb.org

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

 

THE MUNICIPAL SECURITIES RULEMAKING BOARD
ISSUES GUIDANCE ON ARS BUYBACKS

 

Alexandria, VA – The Municipal Securities Rulemaking Board (MSRB) today reminded dealers to report buybacks of municipal auction rate securities to the MSRB as they would ordinary auction-rate transactions.  The MSRB is also taking this opportunity to note that ARS buyback transactions will be transparent in public MSRB trade data available on the Electronic Municipal Market Access system, or EMMA. 

A number of securities dealers recently announced programs to buy back auction rate securities from customers, largely as a result of settlement agreements with state attorneys general.  However, the additional trade volume represented by ARS buybacks does not necessarily represent a recovery of the ARS market from the unprecedented number of failed ARS auctions this year. Consequently, this trade data may not reflect the market value of these securities.

To view the MSRB’s notice to dealers, click here.



 

The Municipal Securities Rulemaking Board (MSRB) was established by Congress in 1975 with the mission to protect investors, issuers and the public interest and to promote efficiency, competition and capital formation. MSRB is a private, self-regulatory organization governed by an independent board of directors with market knowledge and expertise. MSRB does not receive federal appropriations and is funded primarily through fees paid by regulated entities. MSRB is overseen by Congress and the Securities and Exchange Commission.

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