Best Execution is a relatively new regulatory concept which focuses on increasing the transparency of execution and level of disclosures in financial transactions – a key element to providing more clarity on the functioning of financial markets and to better protect investors.
The regime requires investment firms (IFs) and financial institutions to provide the best available terms for the execution of client orders under MiFID II and MAS regimes. The most favourable terms for the execution of client orders include considering a combination of factors:
- likelihood of execution;
- settlement size;
- settlement nature; and
- any other relevant consideration.
IFs and financial institutions must also create an execution policy and procedures, and regularly monitor the execution quality when executing orders on behalf of their clients.
TRAction assists firms in complying with Best Execution under both MiFID II and MAS. We have developed a Best Execution Monitor to meet the growing regulatory demands imposed on firms. Our Best Execution Monitor is a smart system that collects, analyses and compares your transaction data against market reference data to compute representative benchmarks that enable consistent and fair evaluation of performance.
For further information on Best Execution under MiFID II and MAS, please see the following links: