Alert February 05, 2008

SIFMA Publishes White Paper on Best Execution Guidelines for Fixed-Income Securities

The Asset Management Group (“AMG”) of the Securities Industry and Financial Markets Association (“SIFMA”), released a white paper designed to provide guidance regarding achieving best execution for fixed‑income securities.  The white paper discusses the dearth of guidance on providing best execution for fixed‑income securities in contrast to that for equity securities, and discusses differences between the two markets that have a bearing on best execution determinations in the fixed‑income securities context.  The centerpiece of the white paper are the Best Execution Guidelines for Fixed‑Income Securities (the “Guidelines”) which are described as representing a synthesis of the practices and experience of a number of the AMG’s member firms.  The white paper does not address transactions in derivatives, guidance articulated by regulators outside the U.S. regarding fixed‑income best execution and transactions involving clients subject to ERISA.