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


MSRB ISSUES STATEMENT ON FINANCIAL MARKET DEVELOPMENTS

Alexandria, VA – The Municipal Securities Rulemaking Board is following closely financial market developments and their possible effect on the municipal securities market. The MSRB expects the municipal market to continue to operate in an orderly manner, with other market participants absorbing new issuance activity.

On the secondary market side, while some short-term pressure on prices and interest rates can be expected, the MSRB does not expect longer-term liquidity issues that would impair a robust, secondary municipal market. 

The MSRB does not regulate the derivatives market, but municipal issuers with derivatives contracts may be affected by this week's developments.  Issuers should be aware of the terms of their contracts and may consider ongoing efforts led by the International Swaps and Derivatives Association to work with counterparties.

The MSRB is prepared to provide any necessary assistance to preserve orderly market operations in the municipal market.

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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