As my yr as Chair of MSRB’s Board of Administrators involves a detailed and as MSRB celebrates 50 years of serving its congressional mandate to guard traders, issuers and the general public curiosity, I want to share a number of ideas about this very important trade.
I’ve traveled the nation this yr attending trade conferences and occasions and fascinating with stakeholders at each flip. If there’s one frequent theme from all these encounters, it is this: the municipal securities market is resilient and stronger than ever earlier than.
I really like this trade and every part it does to assist make lives higher for all People. Muni bonds assist state and native governments increase capital to construct roads, faculties, hospitals and a lot extra throughout all of our communities. I’m happy with the work we collectively do on daily basis to assist finance this essential infrastructure, and I’m happy with MSRB’s efforts to safeguard the integrity of the $4 trillion market that makes it potential.
Serving on MSRB’s Board of Administrators over the previous 4 years has been a privilege and an honor. MSRB’s Board has illustration and market experience from all corners of the trade, together with sellers, municipal advisors, issuers, and traders. Every of those stakeholders offers totally different views that inform and information MSRB’s necessary work. Given the distinctive, public goal of municipal bonds, I imagine that the market is greatest served by having its personal regulatory physique with a broad vary of market expertise and experience on its board. That’s precisely what the MSRB strives to be, and we should guarantee its continued independence.
An important ingredient of MSRB’s work is to interact with stakeholders from across the nation. MSRB acknowledges the must be attentive to the trade’s issues and, following vital belt-tightening this yr, we look ahead to continued dialogue with our stakeholders as we feature out our statutory duties to guard issuers and traders whereas fostering innovation, competitors and capital formation.
The municipal securities market has been tremendously lively over the previous few years. The amount of municipal bonds issued within the major market has grown steadily, reaching a report of $513 billion in 2024. Secondary market buying and selling in these securities has additionally reached new highs, with 2024 being the third consecutive yr of report commerce quantity. This record-breaking tempo has continued into 2025, pushed by sustained sturdy demand from traders.
Whereas report issuance and commerce quantity are definitely positives for the trade, now we have a lot work to do. Going ahead, we face a altering regulatory setting, an altered work panorama put up COVID-19, the expansion of AI and algorithmic buying and selling and shifting market dynamics. The exit of two massive underwriters from the trade in 2023 created vital alternatives for smaller gamers to fill the void. In the meantime, AI and algorithmic buying and selling are altering how bonds are purchased and bought.
Now greater than ever, it is necessary that MSRB stay vigilant and work intently with our stakeholders to watch these challenges and search for alternatives to evolve and be much more impactful within the years forward. This consists of regulation that displays the expansion of distant places of work, rolling out new know-how that higher serves our constituents, and pondering creatively about how one can proceed serving our congressional mandate to guard traders and issuers.
Furthermore, whereas our trade remained secure within the Large Stunning Invoice, we should proceed to be leaders in educating legislators and others concerning the worth of tax exemption and the significance of the municipal securities market.
As I wind down my yr as MSRB Chair, and my 4 years serving as an MSRB Board member, I wish to thank the trade for every part you do to maintain this dynamic market evolving and assembly the wants of our nation’s communities. It’s an honor to be a part of all that we construct collectively, and I look ahead to persevering with to interact with the nice leaders of this trade.
