Ransomware Ensnares $4.3 Trillion Muni Market’s Key Site

Core Viewpoint - A ransomware attack has disrupted the MuniOS platform, affecting the ability of state and local borrowers to post debt documents in the $4.3 trillion municipal bond market [1][2]. Group 1: Impact on Municipal Bond Market - MuniOS, operated by ImageMaster LLC, has been out of service for several days, impacting the posting of bond offering documents [1]. - Despite the outage, market participants have not reported delays in transactions, although some issuers are using alternative platforms like BondLink [2][4]. - The municipal bond market is crucial for financing infrastructure projects for states, cities, and other entities [3]. Group 2: Operational Adjustments - Issuers are resorting to traditional methods, such as sending large-file PDFs directly and making extensive phone calls to investors [4]. - The Texas Transportation Commission successfully posted documents for a $1.8 billion sale on a different platform, McElwee & Quinn LLC, and provided physical copies to investors [5]. Group 3: Cybersecurity Concerns - Ransomware attacks have become a significant concern, with recent high-profile incidents affecting various corporations [6]. - The municipal market has seen growing concerns over cyber risks, highlighted by a previous incident where a bond sale was hacked [7]. - The MuniOS platform, launched in 1999, holds a significant market share, with over 70% reported in 2017 [7]. Group 4: Regulatory Response - The Municipal Securities Rulemaking Board has advised issuers to use its EMMA website for posting preliminary official statements and other market information during the MuniOS outage [8].