Buy-Side : Best Execution Obligation

What is the Best Execution Obligation?

The Best Execution Obligation in Canada requires dealers and advisors to make reasonable efforts to achieve best execution when acting for a client. It defines best execution as the “most advantageous execution terms reasonably available under the circumstances”, and it went into full effect on September 12, 2008.

It has caused market automation and fragmentation, and judging by the consequences of Reg NMS in the U.S., it will likely create market consolidation in the future.

What can hedge funds and asset managers do about the Best Execution Obligation?

Many hedge funds and asset managers have a strong preference to send their orders through agency brokers operating in Canada. For this reason, Selero provides buy-side traders direct access to its Smart Order Routing software and collaborates with agency brokers to provide the anonymous execution services institutional investors are looking for.

Selero Smart Order Routing and Best Execution Technology

Selero Smart Order Routing and Best Execution Technology (SORBET) gives traders the capabilities and flexibility they seek to achieve the best execution they require. Specifically, it offers a wide variety of configurable execution strategies to choose from, and it allows traders to use those strategies as building blocks to create adaptive, hybrid, flows. Finally, it allows them to change strategies, parameters, and triggers at any time, to reflect changes in their execution priorities and changes in market conditions.

Selero Inc.... |... Selero-Information@selero.com... |... 303-984-4727... | ...© 2002-09 Selero Inc. All Rights Reserved.