Application of Best Execution - COBS Provision: Difference between revisions

Guidance as to 11.2.2R provides:

The obligation to deliver the best possible result when executing {{fcaprov|client}} orders applies in relation to all types of {{fcaprov|financial instruments}}. However, given the differences in market structures or the structure of {{fcaprov|financial instruments}}, it may be difficult to identify and apply a uniform standard of and procedure for best execution that would be valid and effective for all classes of instrument. Best execution obligations should therefore be applied in a manner that takes into account the different circumstances associated with the execution of orders related to particular types of {{fcaprov|financial instruments}}. For example, transactions involving a customised OTC {{fcaprov|financial instrument}} that involve a unique contractual relationship tailored to the circumstances of the {{fcaprov|client}} and the {{fcaprov|firm}} may not be comparable for best execution purposes with transactions involving shares traded on centralised execution venues.