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93-78 SEC Approves Extension Of MSRB Continuing Disclosure Information Pilot System


Senior Management

Executive Summary

The Securities and Exchange Commission (SEC) approved an extension, through April 6, 1995, of the Municipal Securities Rule-making Board's (MSRB) Continuing Disclosure Information Pilot System for accepting and disseminating disclosure notices relating to outstanding issues of municipal securities.


The Continuing Disclosure Information Pilot System (System) is part of the MSRB's Municipal Securities Information Library System (Library System). With its Library System, the MSRB seeks to increase the integrity and efficiency of the municipal securities market by ensuring that the price charged for an issue in the secondary market reflects all available official information about that issue. Operating on a pilot basis since January of this year, the System accepts time-sensitive continuing disclosure information that affects municipal securities in the secondary market for dissemination to interested parties.

To evaluate and address technical, policy, and cost issues, the MSRB chose to implement the System in phases. During the first six months, the System only accepted information from trustees. The MSRB accelerated the second phase and began accepting disclosure notices from issuers as of May 17, 1993.

Currently, the System accepts only short submissions (one to three pages in length) that trustees and issuers submit by mail, facsimile transmission, or electronic transmission. The System then makes these documents available in two ways. A subscription service transmits each document to subscribers as soon as possible after the document is accepted. Information submitted by mail or facsimile goes out by facsimile transmission; information submitted electronically by computer modem is disseminated electronically. Interested persons may also review and copy these documents at the MSRB's Public Access Facility in Alexandria, Virginia.

Extension of Pilot

In August, the MSRB requested an 18-month extension of the program to allow more time for issuers and trustees to recognize the overall benefit to the market in voluntarily providing continuing disclosure information via the System. The SEC granted the extension through April 6, 1995.

During the extended pilot period, the MSRB will explore the feasibility of accepting and disseminating longer documents through the System. Although the SEC approved the extension on an accelerated basis to permit the System to continue to operate without interruption, interested parties are encouraged to submit comments. NASD members that wish to comment on the System should refer to File No. SR-MSRB-93-9 and send six copies of the comment letter to:

Jonathan G. Katz,
Secretary Securities and Exchange Commission
450 Fifth Street, NW
Washington, DC 20549.

The SEC will make all comments available for public inspection and copying at its Public Reference Room, 450 Fifth Street, NW, Washington, DC 20549. Copies also will be available for inspection and copying at the MSRB's principal offices.

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