Changes

Jump to: navigation, search

Best execution

140 bytes removed, 10:17, 17 May 2012
{{helpAddContentRandom_adbox}}  
Best Execution refers to an investment service firm's obligation to execute [[orders]] on behalf of customers and to ensure that the prices those orders receive reflect the best mix of price improvement, speed and likelihood of execution.<ref>{{cite web|url=http://www.sec.gov/investor/pubs/tradexec.htm|name=Trade Execution|org=SEC|date=April 28, 2008}}</ref> [[Brokers]] are obligated to send orders to venues with the optimal "best execution stats."
<!-- Once you begin Under the [[Investment Advisers Act of 1940]], every registered [[investment adviser]], including an investment adviser to add real contenta [[mutual fund]], please remember has a duty to use section headers to make the article easier to read! See the obtain "Referencesbest execution" header below as an exampleon all [[securities]] transactions for their clients Need to use references? Use the following line to copy/paste in where needed, and fill out: <ref>{{cite web|url=http://www.ici.org/funds/abt/faqs_best_execution.html|name=Frequently Asked Questions About "Best Execution"|org=Investment Company Institute|date=April 28, 2008}}</ref> url=web url; name=title of page/article; org=Name of organization who owns page; date=today's date--> {{Infobox Midpage Need Sponsor Right}} <!-- Keep this template fairly close to the top of the article -->
== Determine Compliance With Best Execution Requirements ==
To determine compliance, [[brokerage firm]]s must evaluate customer orders and assess which competing markets, [[market maker]]s, or electronic communications networks offer the best terms of execution. Ultimately, the decision on best execution is made by selecting preferences of market centers or counterparties who consistently meet or exceed certain [[benchmark]]s for quality.