Municipal Securities Rulemaking Board Introduction to the Short-Term Obligation Rate Transparency System October 2009

SHORT System Overview The SHORT System is a facility of the MSRB for the collection and dissemination of information about securities bearing interest at short-term rates and making such information publicly available through a dissemination service. There are two methods of submission, a computer-to-computer process and a web user interface. This presentation will focus on the web interface SHORT is governed by MSRB Rules G-34, G-8 and G-9 Program dealers, re-marketing agents, auction agents or any designated agent may report the newly set interest rates on VRDO and ARS securities Users must register for the SHORT system through the MSRB Gateway Resets must be reported by 6:30PM eastern on the day of the reset

Access The System

Access the system cont’d

Submission Management Screen

New VRDO Submission Screen

VRDO Required Fields CUSIP number Interest rate for the next reset period Identity of Remarketing Agent Date of interest rate reset Length of the interest rate reset period Length of Notification Period Indication of whether interest rate is “set by formula,” “set by Remarketing Agent” or a “maximum rate” Minimum and maximum rates, if any, applicable at the time of the interest rate reset or, if not calculable as of the time of the interest rate reset, indication that such rate or rates are not calculable Minimum denomination Type of liquidity facility Expiration date of each liquidity facility

New ARS Submission Screen

ARS Required Fields CUSIP number Interest rate for the next reset period Identity of Program Dealer(s) Number of days of the reset period Minimum denomination Date and time of the auction Date and time of posting of auction results by an Auction Agent Indication of whether the interest rate represents a “maximum rate,” an “all hold rate,” or a rate that was “set by auction” Minimum and maximum rates, if any, applicable at the time of the auction or, if not calculable as of the time of auction, indication that such rate or rates are not calculable Par amount auctioned, not including hold orders effective at any rate

After completing the “Add New Submission” form you will be re-directed to the submission management screen This screen will indicate whether or not your submission has been processed successfully

You can view your submission simply by clicking on it in the submission management screen

Modifying Submissions Fields in light grey cannot be modified

Cancelling Submissions Submissions may be cancelled by clicking the orange icon at the top left Choosing yes will send you back to the submission management screen where you will see the status icon to the left is now a grey ‘x’

Error Messages Error Messages are displayed at the bottom left of the screen

Adding a new reset to a previous submission As most users will submit resets for the same securities, there is an option to use the previous submission as a base for your new submission

Status Icons Satisfactory Icons The following icons are displayed for those submissions that are successfully processed and that did not receive an error code that would prevent a submission from being disseminated: Instruct – An initial submission of data. Modification – A submission that modified an existing submission. Cancel – A submission that has been cancelled. Error Code Alerts The following icons are displayed for those submissions that receive error codes: This icon is displayed when an error code is applied to a submission, but the error code does not prevent the submission from being disseminated (for example, a submission that receives a “late” error code will have this icon displayed) This icon is displayed when an error code is applied to a submission that prevents the submission from being disseminated (for example, if the submission receives an error code noting that the CUSIP check digit is erroneous, this icon will be displayed). Submissions receiving this icon have not been successfully submitted and further action is required. Note: If more than one error code has been applied to a submission, the icon reflecting the most egregious error will be displayed.

Other Resources Variable Rate Security Market Information http://www.msrb.org/msrb1/SHORT/default.asp Short System Specification http://www.msrb.org/msrb1/SHORT/SHORTSystemXMLInterfaceSpecification-DataElements.pdf Short User Manual http://www.msrb.org/msrb1/SHORT/SHORTSystemWebUserInterfaceManual.pdf

Questions?