MSRB Files Amendment Relating to Proposed Continuing Disclosure Service of the MSRB's Electronic Municipal Market Access System (EMMA)

On July 29, 2008, the Municipal Securities Rulemaking Board (“MSRB”) filed with the Securities and Exchange Commission (the “SEC”) a proposal (the “continuing disclosure proposal”) to establish a continuing disclosure service of the MSRB’s Electronic Municipal Market Access System (“EMMA”).[1] Yesterday, the MSRB filed with the SEC an amendment to the continuing disclosure proposal intended to provide for an effective and efficient transition to EMMA’s continuing disclosure service.[2]  Specifically, the MSRB requested that the SEC approve an operational date for the continuing disclosure service of July 1, 2009 (or such later effective date for related amendments to Exchange Act Rule 15c2-12 proposed by the SEC)[3] and delay the requirement that continuing disclosure documents be submitted as word-searchable portable document format (PDF) files until January 1, 2010.[4]  Several commentators, in response to the continuing disclosure proposal, requested additional time to prepare to use the continuing disclosure service to meet submission requirements under continuing disclosure undertakings and to make documents available as word-searchable PDF files.[5]

In conjunction with the establishment of such proposed effective dates, the MSRB expects to propose in the near future the implementation of a pilot continuing disclosure component of EMMA that would permit voluntary or test submissions of continuing disclosure documents prior to the effectiveness of the SEC’s proposed changes to Rule 15c2-12.  The MSRB is committed to working with issuers, other industry participants and the SEC to help ensure a rational and efficient transition to the new rule requirements and related EMMA system enhancements.  The MSRB would seek to assist potential users of the continuing disclosure service of EMMA through the use of the pilot, during which time users of EMMA would be able to familiarize themselves with the EMMA system and receive assistance to establish user accounts.

Questions about this filing may be directed to Ernesto A. Lanza, General Counsel, or Leslie Carey, Associate General Counsel.

November 6, 2008