Before 2009, a NRMSIR was any person or entity specified by the SEC that entered into a continuing disclosure agreement with an issuer. Municipal security issuers were contractually bound to send NRMSIRs annual financial information such as an Annual Comprehensive Financial Report (ACFR) and disclosures related to issuances such as Official Statements. This documentation was to be used by investors for research and updates on material events. Issuers would submit documents to a NRMSIR via mail, fax, or email.
After July 1, 2009, the SEC required that all municipal security disclosures be sent to the Electronic Municipal Market Access (EMMA) website, which is managed by Municipal Securities Rulemaking Board (MSRB), the municipal securities regulating body.
EMMA now serves as the place where these disclosures are stored electronically. Disclosures are filed with EMMA according to US SEC Rule 15c2-12.This SEC rule requires municipalities to enter into an agreement to provide information to investors and the public, and that information is now available on the MSRB’s EMMA website.
Access to EMMA is free and includes not only information about specific municipal security offerings but also market-wide information, such as third-party yield curves and indices. Other information on EMMA includes a calendar of upcoming bond offerings and upcoming economic events.
Example:
Due to a major forest fire, a tollway which was financed with bonds had to be closed for three weeks, losing a large amount of toll revenue and potentially causing an issue with repaying the next interest payment. The borrower is required to file a continuing disclosure document with EMMA to inform investors of the current issue. If the rating agencies change the bond ratings due to this issue, that information would also be posted on EMMA.
What’s important here?
As of 2009, EMMA is the official gatekeeper of disclosures filed by issuers for securities issued. Since its inception, EMMA has been enhanced to include general market data as well as trading data.
