âSeveral major dealer organizations have already deployed MuniGUARD, giving their trading desks and wealth management departments the latest business-critical filings on the bonds they buy and sell. For these firms, MuniGUARD is an essential tool for protecting their customers and themselves in this deteriorating credit environment,â said Peter Schmitt, CEO of DPC DATA. âThere is no question that new material filings, particularly those indicating bond distress, can instantly change the credit profile and pricing of municipal bonds. MuniGUARD places this information directly into dealersâ hands in their everyday workflow.â
In the wake of recent announcements by the Municipal Securities Rulemaking Board (MSRB) and the Financial Industry Regulatory Authority (FINRA) related to disclosure-related practices, dealers are facing more detailed regulatory requirements and increased industry enforcement. FINRA has announced an industry-wide âsweepâ to determine dealer compliance with MSRB rules for fair dealing, fair pricing and determining the suitability of an investment for bond buyers. Subsequently the MSRB released a new interpretive notice to dealers indicating that they are not only responsible for access to material secondary market disclosures in meeting these regulations, but they are also responsible for interpreting and disclosing this content to investors.
Until MuniGUARD, time-consuming and expensive labor was required to track these unscheduled material event filings by issuers and obligors. The MSRBâs recently launched EMMA system, which is also DPC DATAâs main source for new disclosure filings, offers timely access to official materials. However, users must query the system by one CUSIPÂ® number at a time to discover if new filings exist. In contrast, DPC DATA provides timely direct feeds of material event information, along with direct access to the documents.
âToday, no one wants to wait or dig for this information. Since the launch of MuniGUARD in June, our first customers have discovered that MuniGUARD can be deployed quickly in the systems they already use to manage offerings and keep track of customer positions,â said Michael A. Ruvo, president of DPC DATA. âThere is no more efficient solution than MuniGUARD to the universal problem of staying on top of critical disclosure information in a timely manner.â
To optimize usability for the dealer community, MuniGUARD can be delivered as a data feed for integration into trading systems, risk management applications, intranet portals and other internal systems, or through DPC DATAâs MuniLINKÂ® custom API for web services. The customizable MuniGUARD content includes descriptive data pertaining to each notice at the CUSIP-9 level and a direct link to the definitive electronic document for each material event notice.