MAS Best Execution

Best Execution requires financial firms to provide the best available terms for the execution of client orders under MAS.

Reduce Costs

Relieve the burden on human and internal resources assigned to trade reporting

Data Enrichment

Our solution enriches and validates your data to ensure it meets the submission requirements

Compliance Support

Receive specialist advisory and consultation services from our team of regulatory experts

Report on Your Behalf

Let us manage the communication between the TR/ARM for you

Best Execution requires financial firms to provide the best available terms for the execution of client orders under MAS. The most favourable terms for the execution of client orders include consideration of the following:

  • price;
  • cost;
  • speed;
  • likelihood of execution;
  • settlement size;
  • settlement nature; and
  • any other relevant consideration.

Financial firms must also create an execution policy and procedures, and regularly monitor the execution quality when executing orders on behalf of their clients.

The new requirements are set out in a Notice on Execution of Customers’ Orders (the Notice) and accompanying guidelines, which will take effect on 3 March 2022. In the Notice, MAS formalised its existing expectation that financial institutions conducting dealing and fund management activities under Chapter 289 of the Securities and Futures Act (the Act) must do so fairly and act in the interests of their customers. The new requirements also align the Singapore position on execution of customer orders more closely with those which apply in jurisdictions such as the European Union.

Who is required to comply?

All capital markets intermediaries (CMIs) are required to establish and implement Best Execution policies and procedures which cover all capital markets products and all capacities in which it is acting in. A CMI is either:

  • a holder of a capital markets services licence to carry on a business in one or more of the following regulated activities:
  • dealing in capital markets products;
  • fund management;
  • real estate investment trust management; or
  • a person exempted from the requirement to hold a capital markets services licence under section 99(1)(a), (b) or (c) of the Act in respect of one or more of the following regulated activities:
  • dealing in capital markets products;
  • fund management;
  • real estate investment trust management.

How to comply?

You should periodically monitor your compliance with, and the effectiveness of, your Best Execution policies and procedures. In doing so, you should assess whether your execution of transactions has delivered the best available terms to customers on a consistent basis. Such monitoring should reflect the nature, scale, and complexity of your business.

TRAction’s Best Execution Monitor

Our Best Execution Monitor is equipped to help you comply with the Best Execution reporting requirements. Learn more.

Further Information

TRAction has developed a solution to help you to comply with the Best Execution reporting requirements under MiFID II.

Our Best Execution Monitor operates as follows:

  1. Transaction data is submitted to TRAction either by file or through an API connection;
  2. TRAction compares this data against the Reuters one-minute high and low for the relevant time the trades were executed; and
  3. TRAction’s Best Execution Monitor then displays statistics about the quality and pricing of execution, including the 5 best and 5 worst transactions.

Read more.

Each Investment Firm (IF) is required to make a quarterly assessment on its previous 6 months’ data to determine if it qualifies as a Systematic Internaliser (SI). Where an IF is classified as a SI, it will be obliged to meet the pre- and post-trade transparency requirements. Read more.