1. Muni Forum of New York Ronald A. Stack, MSRB Chair Lynnette Hotchkiss, MSRB Executive Director September 17, 2009

2. MSRB in a Nutshell  Self Regulatory Organization for broker-dealers and bank dealers in the municipal market  no rulemaking authority over issuers, intermediaries or other market participants  no non-securities rulemaking authority  MSRB coordinates with SEC, FINRA, bank regulators on enforcement  Coordinating efforts with IRS, Treasury, Federal Reserve, Congress and others on market issues  Congressionally mandated mission:  protect investors and the public interest  promote fair and efficient municipal bond market  MSRB furthers mission through rulemaking, information services/systems, outreach and education and market leadership

3. The Increased Focus on the Municipal Market in Washington  House Financial Services Bills/Hearings  Senate Banking Committee Hearings  Treasury/Federal Reserve  State AG Interest  SEC – priority of Mary Schapiro  Obama Administration  Current Status: On Hold

4. Regulation of Financial Intermediaries  MSRB Statement Regarding Regulation of the Municipal Market on January 9, 2009 Focus attention on unregulated municipal market participants  MSRB Letter to Congress with Specific Recommendations on Regulating Financial Intermediaries on February 11, 2009  MSRB Report on Unregulated Market Participants  House Financial Services Committee Bill Would regulate unregulated muni market intermediaries

5. MSRB’s Recent Investor Protection and Fair Practice Initiatives  Build America Bonds – MSRB Notice 2009-15 (April 24, 2009)MSRB Notice 2009-15 Focus on customer protection obligations – fair dealing, disclosure of material facts, suitability of recommendations  California IOUs – MSRB Notice 2009-41 (July 10, 2009)MSRB Notice 2009-41 Focus on customer protection obligations – fair dealing, disclosure of material facts, suitability of recommendations, fair pricing  VRDOs – MSRB Notice 2009-42 (July 14, 2009)MSRB Notice 2009-42 Focus on customer protection obligations – fair dealing, disclosure of material facts, suitability of recommendations, fair pricing  MSRB/FINRA Notice – MSRB Notice 2009-38 (June 30, 2009)MSRB Notice 2009-38 Joint reminder on investing in municipal bonds in light of current market conditions

6. MSRB Agenda  Enhancements to SHORT  Enhancements to EMMA  Bond Ballot Initiatives  Priority of Orders  Bank PAC Disclosures  G-Rules Review  Market Resource to Capitol Hill, Obama Administration, Fellow Regulators

7. EMMA: Electronic Municipal Market Access (www.emma.msrb.org)www.emma.msrb.org  Components of EMMA:  official statements – current & historical from 1990  advance refunding documents – current & historical from 1990  trade prices – real-time & historical from 2005  market statistics  SHORT – transparency for ARS and VRDOs  municipal bond educational resources  Continuing disclosures

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33. Muni Forum of New York Ronald A. Stack, MSRB Chair Lynnette Hotchkiss, MSRB Executive Director September 17, 2009