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MuniDeals.com : The Original Qualified Portal under MSRB Rule G-32 Compliant since July 10, 2009. Background On July 1, 2009, the MSRB released its rules regarding the Disclosure requirements for a primary bond issue. The new rulings follow the trend of other securities regulators to encourage the use of the Internet and digital file transfer as the preferred method of financial information transfer. Click here to see our PowerPoint Show: [When the file opens, use “Page Down” key to advance the slides] The main themes of the rules are:
MuniDeals.com is a leading provider of digital financial printing services. Our experience allowed us to understand what this ruling means and apply it to benefit the public finance marketplace. Rule G-32 clears the way for us to apply the power of the Internet to the practice of finance in a whole new way. It changes everything in the life cycle of the Official Statement. MuniDeals.com is the first Qualified Portal under MSRB Rule G-32. As a Qualified Portal, MuniDeals makes possible the introduction of the iStatement ™. The iStatement ™ is a Notice that can be used to replace the Official Statement as the document that must be provided to the bond purchaser by the trade settlement day. Distributing a Notice is much less expensive; both financially and environmentally, than delivering a printed copy of the Official Statement under very tight deadlines. The iStatement ™ platform, is based on the MSRB ruling that Notice equals Access and Access equals Delivery. The iStatement ™ informs the purchaser that they can Access the digital version of the document on both the EMMA web site and on the MuniDeals.com Qualified Portal. Furthermore, the bond purchaser viewing the document at MuniDeals.com can order a printed Official Statement directly from its Qualified Portal. MuniDeals.com will send the investor a printed Official Statement, on behalf of the broker dealer, the next business day by first class mail. MuniDeals then provides the deal manager with a record of who requested the Official Statement and evidence that it was mailed in compliance with the regulations. MuniDeals.com applies a process similar to the SEC approved methodology that is used by corporations to supply year-end proxy materials to shareholders. That process has saved companies thousands in printing and shipping costs by reducing the amount of printed annual reports mailed to shareholders. The iStatement ™ releases the Broker Dealer from the burden of using expensive fulfillment houses and express mail to get a printed Official Statement into the hands of a bond purchaser. The iStatement ™ adds productive time into the underwriter’s distribution window and slashes their considerable cost of express mailing and order processing. As a financial printer, MuniDeals will continue to support the collaborative efforts of the working group and provide printed books to those who want a hard copy. But the old distribution model changes as MuniDeals.com acts as the disclosure transmission vehicle of the underwriter to the public in both paper and digital formats. Digital documents are hosted for public viewing on its Qualified Portal and the iStatement ™ is integrated into the underwriter’s electronic or paper trade confirmation process. For a minimum of 30 days after the offering, MuniDeals.com will stand ready to print and mail the Official Statements, individually, as requested through its Qualified Portal, at no charge, to the investing public. Suitable for offerings of all sizes and types, this streamlined distribution channel provides faster access to disclosure information and creates savings which have not previously been available to the market place. The future of municipal disclosure has arrived. Frequently Asked QuestionsWhat is a Qualified Portal? The Qualified Portal was created as a vehicle that services the public in ways that the EMMA filing portal was never intended. The EMMA is a regulatory repository that is open to the public. Since the format of the information is a PDF file, the visitor to the EMMA web site can download the document to view, save and or print. The Qualified Portal was left to private industry to make as user friendly as possible and to serve the unique needs of the public finance community as well as the public. Why is it important to an Underwriter? Using the MuniDeals.com Qualified Portal gives you access to the state of the art distribution systems that can replace the considerable expense of express mailing a printed book to investors by the time the trade settles. It eliminates a whole step in your distribution chain. You no longer need to ship books to a fulfillment house for mailing to the bond holder. MuniDeals does if for you with Notification, Access and Print/Mail-on-Demand. You are going to save a lot of money and have fewer headaches. Why is it important to a Financial Advisor? By using the MuniDeals.com Qualified Portal, you deliver to the Underwriter a document work product on a platform that is best suited for the Underwriter to distribute the Official Statement at the least possible cost to the issuer. Historically, the cost of printing is often small compared to the unpredictable cost of shipping. It also helps to eliminate the cost overruns when an underwriter or co-managers, need for printed books and shipping, exceed the anticipated printing cost of issuance. MuniDeals provides service and value and options to the working group. Why is it important to bond counsel or disclosure counsel? The MuniDeals platform is well planned and executed and provides the other members of the working group with the tools to speed disclosure and provide value to the issuer. Why is it important to an Issuer? MuniDeals services are mostly fee based. The printing cost of issuance will be more predictable and not subject to old levels of express printing and shipping required to support the disclosure needs of a selling syndicate. This is a new disclosure model that is not all about printing. There will still be printing. But there will be less of it, so the unit price of a book will be higher, but there will be less shipping and more time. Limited printing is part of an integrated disclosure process that represents a far better value than the old methods. Even when compared to the environmental benefits of printing on recycled paper, the carbon footprint of digital file transmission is negligible when compared to paper, printing and shipping. This is a Green application. Are books still printed? Yes, but in smaller quantities for the working group and the internal needs of the issuer. Other books are printed as needed when ordered by visitors to the MuniDeals.com Qualified Portal. MSRB requires the underwriter to make books available at no cost, upon request, for a minimum of 30 days following the offering – that happens through our Qualified Portal. I already have a printer for the OS – can I still use the MuniDeals.com Qualified Portal? Sure – send us the PDF and we will host the Official Statement. Then we will work with the underwriter to distribute the i Statement ™ notification to the bond holders and MuniDeals.com will print and mail official statements when requested during the period required by the MSRB. How does the iStatement integrate into the underwriter’s I.T. client notification system? Every firm has its own operational mechanics. We will be happy to work with you to implement this feature. Your electronic notification system or trade confirmation will contain certain language and point your customers to our web site and the EMMA web site to access the disclosure information.How can I learn more? Give us call and we’ll discuss your questions 800-813-1691 John Dull: jdull@munideals.com Janis Valenti: jvalenti@munideals.com |