Investment firms are obliged to offer best execution when executing orders on behalf of a client; this principle applies to MiFID II financial products including equity, fixed income, derivatives and commodities. Best Execution aims to strengthen investor protection by making markets more efficient and transparent.
Best execution is the obligation when acting on behalf of a client, to take all sufficient steps to obtain the best possible result for the execution of the client orders, having due regard to the wider market in any relevant instrument. The execution process has to be reflected in an execution policy, which must specify the execution venues, and, where derivatives are concerned, must address and distinguish between Exchange Traded products and Over-The-Counter (OTC) products. Firms and Trading Venues have ongoing requirements to produce reports for their clients and provide ongoing monitoring.
The workshop will examine the requirements and explore the organisational arrangements that firms will need to consider.
By the end of the programme, participants will be able to:
- Examine the Best Execution regime
- Clarify key regulatory principles that firms should review their framework against including governance; management oversight; roles & responsibilities and process
- State the practical considerations for investor protection including to take all “sufficient” steps to achieve the best possible results for clients
- Explore what constitutes “Best Execution” in the context of scope, policy, disclosure and monitoring
- State the new requirements for investment firms and trading venues
- Appreciate a model framework which promotes an appropriate approach to addressing conduct risk
- Examine firms that have complied with their execution policy and demonstrate compliance to national competent authorities
- Explore practical examples from EU National Competent Authorities enforcement actions and case studies
- Explore how firms manage outsourcing risk and due diligence with third parties
- Appreciate a framework to practically manage regulatory change within their organisation for meeting regulatory expectation
The Overarching Best Execution Principles
The Best Execution’s overarching requirements are that firms must take “sufficient” steps, when executing client orders or placing orders with other entities for execution, to obtain the best possible result for its clients.
Best Execution Challenges
Best Execution requirements requires firms to disclose the top five execution venues used. This session examines regulatory challenges for monitoring and evidencing best execution within firms and the impact on the market.
Best Execution Governance
A firm’s governance arrangements must be robust and ensure management have a full understanding of their responsibilities. This session examines the related regulatory requirements.
This workshop is designed to be participative throughout. The agenda will combine key formal presentations, case studies and syndicate discussion sessions. There will be ample opportunity for delegates to benchmark experiences with industry peers and raise issues of most concern to their organization, either confidentially or in open session.
Who Should Attend
Management, compliance and administration professionals whose companies are regulated by National Competent Authorites, particularly senior management, legal, compliance, internal audit and those employees at the front-line.