Morgan Stanley’s Alexander Chilton has been elected chair of the Municipal Securities Rulemaking Board for fiscal year 2027 while Battery Park City Authority Chief Financial Officer Pamela Frederick has been elected to serve as the MSRB’s FY2027 vice chair.
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Chilton, a managing director and head of municipal securities at Morgan Stanley, and Frederick were elected to their board leadership roles for the upcoming fiscal year during the MSRB’s two-day final quarterly meeting of FY2026, held July 22 and July 23, the MSRB said in a press release issued Thursday. The board’s 2027 fiscal year begins Oct. 1.
During the meeting, the board also approved a $48 million FY2027 budget, representing a 3.7% increase from the MSRB’s FY2026 budget, and elected four new board members to serve four-year terms beginning Oct. 1. Officer terms are for one year. The terms of Natasha Holiday, the MSRB’s current chair, and Wendell Gaertner, its current vice chair, will end Sept. 30.
Chilton, a current member of the board of directors of the MSRB, is chair of the MSRB’s Finance Committee and also serves on the Steering Committee.
“MSRB’s FY2027 budget is essentially flat, accounting for inflation, and aligned with our SEC-approved rate card fees for 2027,” Chilton said in the release. “MSRB’s commitment to public accountability through fiscal responsibility and transparency have remained central to our efforts as we offset primary cost drivers of personnel and technology expenses with expense savings in other operating areas.”
As part of the MSRB’s commitment to financial transparency, it held conversations in April with stakeholders to review the FY2026 budget and to preview the draft budget for FY2027. The MSRB then met with stakeholders in June to provide a more detailed overview of the draft FY2027 budget, seeking feedback prior to Finance Committee approval, and, ultimately, board approval of the budget.
“We thank stakeholders for their engagement throughout the FY2027 budget process and look forward to releasing our annual budget in October to provide further transparency to the market,” Chilton said in the release.
Frederick, also a current board member, is chair of the Audit and Risk Committee and serves on the Nominating Committee and the Steering Committee.
“I am delighted to welcome Alex and Pam as our incoming chair and vice chair,” MSRB CEO Mark Kim said in the release. “Their service on MSRB’s Board has been exemplary, and we look forward to their continued leadership as we carry out MSRB’s mission to protect investors, issuers and the public interest in a fair and efficient municipal securities market.”
The Bond Market Association, a trade association formerly known as the Bond Dealers of America, also welcomed the elections of Chilton and Frederick.
“BMA congratulates Alex Chilton and Pam Frederick on their election as 2027 MSRB chair and vice chair,” Michael Decker, senior vice president for research and public policy at BMA, said in a statement Thursday. “Both bring extensive market experience to their roles, and BMA looks forward to working with both in their new leadership positions. “
The MSRB’s release did not name the four new board members elected during the board’s meeting, but said more information regarding them will be announced “in the coming days.”
During the meeting, the board also discussed various initiatives, including initiatives relating to regulatory modernization, according to the release. With regard to MSRB Rule G-27, the board discussed potential next steps on MSRB dealer supervision initiatives and also updated board authorization on two upcoming rule filings with the Securities and Exchange Commission.
The board modified its previous approval from its April
The MSRB also authorized making permanent municipal securities dealers’ ability to participate in the Financial Industry Regulatory Authority’s Remote Inspections Pilot Program upon FINRA making the program permanent.
FINRA’s Board of Governors in June approved a rule proposal that would make the pilot program permanent before it expires to preserve the ability of FINRA member firms to carry out remote inspections of their offices, according to a June 11 FINRA press release, which said the rule proposal would be filed with the SEC. A FINRA spokesperson on Friday confirmed that the rule proposal has not yet been filed with the SEC.
“BMA applauds the board’s approval of changes to Rule G-27 related to supervision,” Decker said. “We see this initiative as a positive first step in a more fundamental revision of the supervision regime.”