MiFiD II Applied Best Execution and Controls for Investment Firms

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.

Best Execution as part of the Markets in Financial Instruments Directive Recast (MiFID II) aims to strengthen investor protection by making markets more efficient and transparent. The first set of reporting expected to be produced by firms is April 2018.

Training Objectives

Participants will learn how to:

• Recognize and apply major requirements relating to Best execution by MiFiD 2
• Construct RTS 27
• Construct RTS 28
• Apply Best Execution as per CySEC Law 87(i)/2017
• Utilize Best Execution requirements for internal processes optimization

Training Outline

Introduction to Best Execution

The requirements deriving from MiFID II

• Reasonable Steps vs Sufficient Steps
• Article 27 on the obligation to execute orders on terms most favourable to the client

Best Execution as per CySEC Law 87(i)/2017

• Recognize the major components of Best execution
• Measure the major factors of Best Execution
• Detect major deficiencies related to Best execution arrangements and measures

Best Execution criteria

• Client categorization requirements
• Client Characteristics and preferences
• Orders characteristics
• Execution Venues characteristics

The regulatory developments and priorities, impact of RTS 27, RTS 28 and Professional Execution Policy

• Explanation of Article 66 of EU Delegated Regulation 2017/565
• Introduction to RTS 27 – quality of execution report
• Introduction to RTS 28 – top 5 execution venues

Circular C343 Thematic review of best execution obligations of Cyprus Investment Firms

• Objective of the Review – Sample reviewed
• Observations identified
• Good practices
• Next Steps

Training Style

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 organisation, either confidentially or in open session.

CPD Recognition

This programme may be approved for up to 5 CPD units in Financial Regulation. Eligibility criteria and CPD Units are verified directly by your association, regulator or other bodies which you hold membership.

Professionals requiring CPD units to meet the education requirements for CySEC licence renewal, and/or for maintaining other professional memberships/certifications which accept CPD in Financial Regulation, are advised to consider training subjects in categories that indicate CPD training in Financial Regulation.

Who Should Attend

Dealing room, Brokerage Departments, Compliance, Risk Management, Management, and Technical staff. This workshop will be of benefit to anyone who is likely to be affected by the changes to be brought in by MiFIR Reporting, including senior management, legal, compliance and those employees at the coalface.

Who Should Attend

The programme is ideal for:

• Mangers and Senior Managers in Investment Firms
• Compliance Officers and Front office professionals
• Internal Auditors
• Internal Lawyers
• External Auditors, Lawyers and Financial Consultants
• Dealing room seniors