Requirement (MIFID)
Article 21 Obligation to execute orders on terms most favourable to the client
Requirements MIFID - DIRECTIVE 2004/39/EC
Description
Description
1. 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. Nevertheless, whenever there is a specific
instruction from the client the investment firm shall execute the order
following the specific instruction.
2. Member States shall require investment firms to establish and
implement effective arrangements for complying with paragraph 1. In
particular Member States shall require investment firms to establish and
implement an order execution policy to allow them to obtain, for their
client orders, the best possible result in accordance with paragraph 1.
3. The order execution policy shall include, in respect of each class
of instruments, information on the different venues where the investment
firm executes its client orders and the factors affecting the choice of
execution venue. It shall at least include those venues that enable the
investment firm to obtain on a consistent basis the best possible result
for the execution of client orders.
Member States shall require that investment firms provide appropriate
information to their clients on their order execution policy. Member
States shall require that investment firms obtain the prior consent of
their clients to the execution policy.
Member States shall require that, where the order execution policy
provides for the possibility that client orders may be executed outside a
regulated market or an MTF, the investment firm shall, in particular,
inform its clients about this possibility. Member States shall require that
investment firms obtain the prior express consent of their clients before
proceeding to execute their orders outside a regulated market or an
MTF. Investment firms may obtain this consent either in the form of a
general agreement or in respect of individual transactions...
Referenced requirement
Article 46 Execution policy
Article 44 Best execution criteria