Dealing and Managing

Question 1

What is the best execution obligation?

Answer 1

Firms must take steps to obtain the best possible result when executing orders

Question 2

What must the best execution obligation take into account?

Answer 2

o	Price 
o	Cost 
o	Speed 
o	Size 
o	Likelihood of execution

Question 3

What must happen with policy and best execution obligation?

Answer 3

Establish and implement a best execution policy (and keep up-to-date)

Question 4

What must happen with client consent and best execution obligation?

Answer 4

Obtain client’s consent to execute a trade outside a regulated market or MTF

Question 5

When handling a client’s order what must firms ensure?

Answer 5

o Executed client orders are promptly and accurately recorded and allocated
o Comparable orders are executed sequentially and promptly
o Retail are informed of any material difficulty in the prompt execution of their order

Question 6

What conditions can firms aggregate orders under?

Answer 6

o It is unlikely to disadvantage clients
o The fact that aggregation may work to their disadvantage is disclosed to clients
o An order allocation policy is established