MSRB Draft Rule G-18 "Best Execution" Comments Filed

Today BDA filed comments, available [here], on MSRB Notice 2014-02, “Request for Comment on Draft Best- Execution Rule, Including Exception for Transactions with Sophisticated Municipal Market Professionals.”
The comments assert:
  • MSRB’s proposed rule should better reflect FINRA Rule 5310 by considering that in instances in which quotations are inaccessible, “reasonable steps” should be employed through the maintenance of appropriate policies and procedures;
  • As previously recommended by BDA, we agree with the MSRB’s proposal to exempt Sophisticated Municipal Market Professionals (SMMPs) from the protection of the rule;
  • A better definition of “Similar Securities” that will be clear for examiners but factor in the judgement of dealers should be developed.
BDA staff and members will continue to dialogue with the MSRB and SEC on the best execution rule.  Should you or anyone at your firm have questions, feel free to contact us.