9.2.11. No Interpositioning
The best execution rule requires broker-dealers to make reasonable efforts to find as favorable a price as possible for a customer’s transaction, given the prevailing conditions of the market. However, best execution means more than getting the customer a favorable price. Among the factors that will be considered in determining whether a broker-dealer has used reasonable diligence are:
- • Character of the market for the security, determined by details such as its price, volatility, and liquidity
- • Size and type of transaction
- • Number of markets checked
- • Accessibility of the quotation
- • Terms and conditions of the transaction as communicated to the broker-dealer
For municipal securities, the information that the dealer reviewed to determine the market price for the security will also be considered.
When a mem
