‘Execution With Diligence’ Standard for Municipal Trading


SIFMA provides recommendations to the Municipal Securities Rulemaking Board (MSRB) for a proposed execution-with-diligence standard for municipal trading, following its initial proposal to the MSRB in June 2013 that an execution-with-diligence standard be applied to trades in municipal securities.  This is a higher standard for dealers to meet than what is currently in place.  The SIFMA proposal promotes effective and efficient regulation of the municipal securities market and would enhance investor protection without harming liquidity. It would also impose higher standards on municipal securities dealers that would advance public trust and confidence in the municipal securities market, and would result in a principles-based rule that does not favor one execution venue or counterparty over another.  The standard was developed by a working group of members following the July 2012 SEC Report on the Municipal Securities Market. It was approved by an overwhelming majority of members of SIFMA’s Municipal Securities Division.

View SIFMA’s Press Release: SIFMA Proposes ‘Execution With Diligence’ Standard for Municipal Trading (July 26, 2013)
View the Bond Buyer’s Video Interview: SIFMA Discusses ‘Execution with Diligence’ Proposal (July 29, 2013)



Municipal Securities Division