Application of Best Execution - COBS Provision: Difference between revisions

Application of Best Execution - COBS Provision (view source)

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-{{cobssnap|11.2.2}}
+{{cobsanat|11|2A|7}}
+Guidance at 11.2A.7 provides:
-{{cobsanatomy}}
+''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 and 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 to take into account the different circumstances surrounding the execution of orders for particular types of {{fcaprov|financial instrument}}. For example, transactions involving a customised OTC {{fcaprov|financial instrument}} with a unique contractual relationship tailored to the circumstances of the {{fcaprov|client}} and the firm may not be comparable for best execution purposes with transactions involving [[shares]] traded on centralised execution venues. As [[best execution]] obligations apply to all {{fcaprov|financial instruments}}, irrespective of whether they are traded on trading venues or [[OTC]], {{fcaprov|firm}}s should gather relevant market data in order to check whether the [[OTC]] price offered for a client is fair and delivers on the [[best execution]] obligation.''