The U.S. regulator of municipal securities is poised to issue a rule to extend broker-dealer best execution requirements into the sector. The aim is to provide retail investors with the best prices available in the market. The concept is already applied to corporate bonds and equities, although it will be more subjective in the illiquid muni markets. The industry has argued that such rules must remain flexible and reflect practices in the sector. The Municipal Securities Rulemaking Board, (MSRB) last week announced that it will discuss proposed rules on best execution at its board meeting this Wednesday through Friday. The rule would apply the concept to muni broker-dealers for their trades with retail clients. MSRB, which is the self-regulatory organization for the muni markets, stated that it would publish rulemaking actions agreed by the board shortly after the meeting. In August, MSRB issued proposed rules on fair pricing obligations and a related concept release on best execution
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