MRSB links ‘best-execution’ rule effective date to guidance publication

By Tali Rackner

Norfolk, Va., Sept. 3 – The Municipal Securities Rulemaking Board is linking the effective date of its new “best-execution” rule for retail investor transactions to the publication of implementation guidance, according to a press release.

This is to ensure that municipal securities dealers will have sufficient time to review the forthcoming guidance.

The MSRB said it filed documents with the Securities and Exchange Commission to establish the effective date of the new rule four months from the publication date of the implementation guidance. MSRB Rule G-18, on best execution, with related amendments to MSRB Rules G-48 and D-15, requires dealers to seek the most favorable terms reasonably available for their retail customers’ transactions.

The MRSB said that linking the effective date of the best-execution rule to the publication of the guidance will establish a clear implementation period and ensure that dealers have adequate time to review and make use of the guidance as they continue to prepare to comply with the new rule.

It will announce the specific effective date of the rule upon publication of the implementation guidance.

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