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MSRB GC Testifies at SEC Field Hearing, Credits Erik Sirri

August 2, 2011
At the SEC's hearing in Alexandria, VA, General Counsel Ernesto Lanza reported on various initiatives by MSRB to increase muni market transparency, specifically concerning pre-trade price transparency.  Mr. Lanza pointed out that his organization's post-transparency efforts have increased individual investor participation and reduced information asymmetries in the muni securities market.  He also credited the MSRB's Electronic Municipal Market Access ("EMMA") site, which offers a free ticker for real-time municipal bond prices. Mr. Lanza credited former SEC Chief Economist Erik Sirri with helping to start an MSRB study that's looking into the effect of municipal market transparency on investor protection.  Of the study, Mr. Lanza said:
“Perhaps Professor Sirri’s most challenging task is to develop a preliminary assessment of the impact of current forms of pre-trade transparency, such as through alternative trading systems or other market mechanisms, in light of the private nature of these venues and the limited dissemination of information from them to the broader market.”
For more information and a transcript of the MSRB's written testimony, please visit [MSRB, 7/30/11].