BEST Execution >> introduction
Irrespective of the instrument - equities, derivatives, bonds, foreign exchange - the last twenty years have seen a phenomenal growth in global financial markets with technology as its empowering force. That growth has also led to logistical and regulatory challenges, which have come into even sharper focus with the current market turmoil, central to which is the concept of best execution.
The term has been around for a long time providing a broad, if undefined guide for market participants to achieve the best price for their clients, but is that still the case?
Perhaps the most succinct definition is provided by the European Markets in Financial Instruments Directive (MiFID), which states, as part of Directive 2004/39/EC - Article 21, the obligation to execute orders on terms most favourable to the client:
“Member States shall require that investment firms take all reasonable steps to obtain, when executing orders, the best possible result for their clients taking into account price, costs, speed, likelihood of execution and settlement, size, nature or any other consideration relevant to the execution of the order.”
The pursuit of these objectives is what Best Execution magazine is all about.
Guides
The Best Execution Guide to TCA is an in-depth look at the challenges asset managers face and the tools being employed to limit implementation shortfall, improve price efficiency and ultimately achieve best execution.
Copies can be purchased on request (@ €40/$55/£35).
The Best Execution 2009 Guide to Low Latency outlines some of the technologies and the firms underpinning the latest advances in reducing latency in trading and market data applications, and how key technology and solution providers in this space are working together to provide a holistic solution that embeds lower latency in each component of the underlying infrastructure that supports firms’ business processes.
Copies can be purchased on request (@ €40/$55/£35).
The Best Execution 2010 Guide to Low Latency.
Despite the financial crisis, many buy and sellside firms have dug deep into their IT pockets and invested in latency management systems. Against this background, the second edition of our Guide to Low Latency tracks the developments, trends and issues in the ever-changing technological landscape.
Copies may be purchased on request (@ £35/$55/€40 each) - click image.
