Best execution | ScienceGate

The revised Markets in Financial Instruments Directive and Regulation (the MiFID II regime)See Directive 2014/65/EU (MiFID II) and Regulation (EU) 600/2014 (MiFIR). is one of the most comprehensive reforms of market structural and investor protection regimes the world has yet seen. The MiFID II regime will affect the European – and likely the global – market structure for years to come. Based on relevant perspectives from the revised best execution regime under MiFID II, this article suggest that it is time to reduce complexity. It is argued that unless a sufficient degree of horizontal and vertical integration of the best execution regulation takes place, the policy objectives cannot be reached. Further, it is argued that the significant data exercise that comes with the new rules only serves end-investors if a sufficient level of data consistency can be achieved. From this outset, the article emphasises the increased importance of data in today’s EU financial regulation. The article includes relevant comparisons to the equivalent US rules on best execution.

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Liquidity and best execution in the UK: A comparison of SETS and Tradepoint

Journal of Asset Management ◽

10.1057/palgrave.jam.2240026 ◽

2001 ◽

Vol 1 (4) ◽

pp. 344-365 ◽

Cited By ~ 1

Author(s):

J Board ◽

S Wells

Keyword(s):

Best Execution ◽

The Uk

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Five Myths About Listed Trading

The Journal of Trading ◽

10.3905/jot.2018.13.4.100 ◽

2018 ◽

Keyword(s):

Best Execution

ECNs and other electronic venues familiar to Nasdaq traders are beginning to gain traction on the listed side. These innovations are causing investors to reevaluate the meaning of “best execution” and other traditional views about the listed marketplace. The author reviews five such views and concludes that they are myths, not truths. To properly evaluate best execution, careful investors will similarly test doctrinaire notions of listed trading.

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Hong Kong Securities and Futures Commission (SFC) highlights operating, control and compliance deficiencies in asset management industry

Journal of Investment Compliance ◽

10.1108/joic-02-2018-0005 ◽

2018 ◽

Vol 19 (1) ◽

pp. 63-68 ◽

Cited By ~ 2

Author(s):

Anne-Marie Godfrey

Keyword(s):

Hong Kong ◽

Asset Management ◽

Service Providers ◽

Governance Structures ◽

Investment Fund ◽

Extensive Experience ◽

Investment Funds ◽

Content Type ◽

Best Execution ◽

Asset Managers

Purpose To examine the nine common areas of non-compliance in managing investment funds and discretionary accounts, detailed in a Hong Kong Securities and Futures Commission (SFC) circular dated September 15, 2017, directed at SFC-licensed asset managers. Design/methodology/approach Discusses a July 2017 circular indicating the SFC’s general concerns and analyzing the following nine common areas of non-compliance cited in the September 15, 2017 circular: (1) inappropriate receipt of cash rebates giving rise to apparent conflicts of interests, (2) failure to follow investment-suitability and discretionary account mandates during solicitation, (3) failure to implement liquidity-risk management processes, (4) deficiencies in governance structures and fair-valuation procedures, (5) deficiencies in systems for ensuring best execution, (6) failure to safeguard fair order allocation, (7) inadequate controls for protection of client assets, (8) inadequate systems to comply with investment restrictions, and (9) inadequate safeguards to address market misconduct risk. Findings The nine examples of non-compliance provide a useful insight into key “problem areas” indicated to currently be of particular concern to the SFC. Practical implications All SFC-licensed asset managers would be well advised to revisit their internal governance structures and operational policies and procedures in order to ensure that they are compliant with applicable standards and requirements. Originality/value Practical guidance from a lawyer with extensive experience advising investment managers and advisers, fund administrators, trustees and other fund service providers on investment fund-related issues.

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