MSRB’s New Price Discovery Tool

The Municipal Securities Rulemaking Board (“MSRB”) launched a new tool this past June that assists investors in determining the price of a municipal bond. The new price discovery tool can be accessed via the Electronic Municipal Market Access (“EMMA”) website. EMMA provides public information such as disclosures, trade data, and other information about municipal securities to those who invest in the $3.7 trillion municipal bond market. The EMMA enhancements are part of a plan released by MSRB in 2012 for improving transparency in the municipal securities market.

The launch of EMMA’s price discovery tool will improve transparency for investors and allow greater ease in determining the current price of municipal security. “EMMA’s new price discovery tool offers an important new resource for investors who may find it challenging to get a sense of the current price of a security that has not been traded recently,” said MSRB Executive Director Lynnette Kelly. The price discovery tool will improve price transparency by allowing investors to compare prices and yields of municipal securities with the same characteristics.

To use the tool the user must enter the nine (9) digit Committee on Uniform Securities Identification Procedures (“CUSIP”) number into the search box to begin a side-by-side comparison of up to five (5) securities or to view a trade price graph. The site also includes several resources to help users navigate and use the site.

The tool could be particularly helpful for trade execution reviews with investment advisers that invest in municipal securities for their clients.

For further information on this and other related subjects, please contact us at (619) 278-0020 to schedule a consultation.

GENERAL DISCLAIMER: Information contained within this blog does not create a business-client relationship, and none of the content of this blog can be deemed to be consultive business advice.

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