Fair Pricing Requirements
MSRB Rules G-18 and G-30 work together to protect investors from unfair pricing in all customer transactions. Rule G-18 requires that when executing a transaction for a customer as its agent, a dealer must make reasonable efforts to obtain a fair price in relation to prevailing market conditions. Rule G-30 requires that markups and markdowns for principal transactions and commissions for agency transactions be fair and reasonable.
To determine what is fair and reasonable, dealers can take into consideration various factors, including:
- • Fair mar