ACA has added a best execution solution to its ComplianceAlpha RegTech platform. The solution is available as Software-as-a-Service and integrates with the platforms Employee Compliance and Market Abuse Surveillance solutions, as well as third-party systems.
The ACA solution is designed to help global firms facilitate the exchange of critical data and reduce the cost and time to complete required regulatory reports. To do this, it streamlines and automates the process of gathering quantitative and qualitative data needed to support best execution analysis and reporting. It can be used to meet global regulatory requirements of SEC Rules 110-1102, FINRA rule 5310, MSRB Rule G-18, and MiFID II.
“Regulators expect firms to demonstrate that they are consistently taking all sufficient steps to obtain the best possible results for their clients, including evaluating the execution performance of transactions,” says Patrick Conroy, partner at ACA. “Our ComplianceAlpha best execution solution helps clients meet these obligations by evaluating not only the cost of services received from their financial counterparties and service providers, but also the quality of those services.”
The solution outlines a set of recommended tasks for conducting a compliant best execution report. In addition to performing a transaction cost analysis, it allows firms to rank brokers on responsiveness, breadth of services, and other qualitative factors. “By integrating quantitative and qualitative data, we empower our clients to make informed decisions, evaluate broker performance, and fulfill their fiduciary duty diligently,” says Annie Morris, chief product officer at ACA Group.
While the UK no longer requires regulated firms to prepare certain best execution reports (RTS 27 relating to venues and RTS 28 for firms), the regulatory obligations to seek best execution for clients remain and form a central part of Treating Customers Fairly. The EU also deprioritised supervisory actions on non-publication of RTS 27, though the RTS 28 obligation for EU firms remains in place.
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