9.2.5. Minimum Denomination for Trades
In general, a broker-dealer may not purchase or sell municipal securities in amounts lower than the minimum denomination of the issue. A broker-dealer may conduct a customer purchase at less than the minimum denomination, however, if that amount constitutes the customer’s entire position in the issue. It may also conduct a customer sale in an amount below the minimum denomination if the customer is liquidating a position at less than the minimum denomination.
MSRB Rule G-15(f)
Example: Broker-Dealer XYZ has a customer who holds a 20-year transportation revenue bond, in book-entry form, having a par value of $10,000 and a minimum denomination of $1,000. She wants to sell a quarter of her holdings, or $2,500. She cannot, however, because the minimum denomination is