14 November 2014

FCA TR14/13 Thematic Review on Best Execution

In July 2014 the FCA published the TR14/13 Thematic Review, a report relating to best execution, and the practice of payment for order flow, in the UK. Firms looking for a simple but very reliable way to step up to the FCA’s requirements and address some of the key action points set out in this report, should consider the following items where Equiduct provides an on-Exchange, off-the-shelf solution: 

 

 

 

“Ensuring that adequate monitoring programmes are in place to respond to any identified failures of best execution”

  • Equiduct's Premium Best Execution service sources fragmented liquidity from across Europe and covers over 2,000 of Europe’s most liquid shares and ETFs. Monitoring the execution of orders on Equiduct is unnecessary; Best Execution is guaranteed, with proof provided by the Exchange, for all executed orders.

“Monitoring execution venues in order to respond to any changes in the market”

  • Equiduct determines the best price (VBBO) for all stocks traded on Equiduct, in real time, based on the visible liquidity from Europe’s major lit trading venues (MTFs and Regulated Markets).
  • EQUIDUCT is not a SOR, we only use the price information and execute your orders at the VBBO against one of our Liquidity providers.

“Checking that any benchmarks against which best execution outcomes are assessed are appropriate to the order concerned”

  • The VBBO being the best price end clients would obtain if they achieved the optimal partial executions on all the reference markets, provides a perfect benchmark for best execution.

“Ensuring that any sampling used to monitor best execution covers a sufficient range of orders and is proportionate to the nature and extent of the firm's activities”

  • Equiduct provides order-by-order proof of best execution to all market participants via daily and monthly best execution reports.

 

To find out more about Equiduct’s unique Best Execution solution, visit the Trading Model section or contact us.