The author provides market context to the MSRB’s 2016 mandate that “best execution,” a hallmark of the taxable fixed income and equity markets, becomes a staple for retail municipal bond investors. The discussion includes: (i) Current municipal price discovery methodologies, (ii) Electronic markets’ regulatory compliance tools, (iii) Implementation Guidance on MSRB Rule G-18, on Best Execution; and (iv) Recent municipal enforcement actions.
Market expectations and security prices
Market participants use the information available to them at any given time to form expectations of the future performance of a company and a company’s stock...