WASHINGTON - The Securities Industry Association is expected to charge that the Municipal Securities Rulemaking Board's proposed political contributions rule may be unconstitutional because it violates a Supreme Court decision on free speech, sources said yesterday.

The SIA, which represents 700 securities firms, is expected to state its position in a comment letter to be filed tomorrow with the MSRB. The letter will address the two-part rule proposed by the board on Aug. 30 that aims to crack down on political contributions by dealers.

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