Today, the BDA submitted a comment letter to the SEC in response to a request for comment regarding MSRB’s proposed rule change on best execution of transactions in municipal securities. You can view our final comment letter here.
Specifically, the letter addresses the following:
- The approach taken by the MSRB is flawed on a technical level since what they have done is impose on the municipal market, the same duties that are required in the corporate market.
- The term “market” encompasses potentially countless counterparties.
- Use of the term “best execution” is inconsistent with the MSRB’s stated intend; suggest they use “execution diligence”.
- SMMP approach is overly burdensome and should be modified.
- The term “similar securities” lends itself to varying interpretations by regulators and should be clarified by the MSRB.