A registered representative receives a market order from a customer to purchase shares. Under FINRA rules, the broker-dealer's best execution obligation requires:

AExecuting the order at the lowest commission rate available
BGuaranteeing the customer receives the National Best Bid or Offer (NBBO)
CUsing reasonable diligence to ascertain the best market for the security and executing at the most favorable price reasonably available✓ Correct answer
DAlways routing the order to the New York Stock Exchange

Explanation

Why C — Using reasonable diligence to ascertain the best market for the security and executing at the most favorable price reasonably available

Under FINRA Rule 5310, broker-dealers have a best execution obligation requiring them to use reasonable diligence to ascertain the best market for a security and to buy or sell in that market so the resulting price is as favorable as possible under prevailing market conditions. This does not mean guaranteeing the NBBO, but rather exercising due care in order routing and execution. Factors considered include the size of the order, trading characteristics of the security, accessibility of markets, and the terms and conditions of the order.

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