About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

AIMA Offers Guidance to Best Execution Under MiFID II

Subscribe to our newsletter

For hedge funds and other investment managers with a thirst for information on how best execution will change under MiFID II, the Alternative Investment Management Association (AIMA) has just released its MiFID2 Best Execution Guide.

Best Execution under MiFID II differs from its predecessor’s provisions in two main ways. First, MiFID II requires investment firms to take “all sufficient steps” to ensure the best possible outcome when executing client orders, while MiFID I required only “all reasonable steps.” Second, it applies MiFID I’s best execution parameters – price, cost, speed and likelihood of execution and settlement, size and nature of orders – across a range of asset classes, whereas MiFID I applied only to equities.

According to AIMA, to comply with the new requirements, firms will need to review their execution policies and client disclosures (such as Investment Management Agreements). Fund managers also will be required to publish annual reports about their choice of trading venues and brokers.

AIMA’s guide aims to set out the practical considerations that firms will need to take account of in order to ensure they are ready for the MiFID2 deadline and maintain ongoing compliance standards. The guide was developed by AIMA in conjunction with a working group of members. The law firm Dechert LLP chaired the working group and is the sponsor of the guide.

Interestingly, AIMA reckons MiFID II’s reach will be felt outside of the EU. “Our recent MiFID2 survey indicated that some of our members with an international presence are setting the MiFID2 best execution requirements as their global standard,” says AIMA CEO Jack Inglis.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: The emerging structure of the institutional digital assets market

As interest in trading digital assets continues to increase among institutional investors, so too does the need to focus on market structure, regulation and trading solutions. For financial institutions that get it right the rewards will be significant, but it is not necessarily easy and the challenges are many. This webinar will consider how digital...

BLOG

Unlocking the Potential of Relative Value Strategies in Fixed Income Trading

By Tommaso Di Grazia, Head of Fixed Income Product Development, ION Markets. In the complex world of fixed-income trading, relative value (RV) strategies have long been popular among brokers seeking to capitalize on market inefficiencies. These strategies can involve exploiting the mispricings identified by their customers in fixed-income markets globally. To do this, brokers execute...

EVENT

Data Management Summit London

Now in its 14th year, the Data Management Summit (DMS) in London brings together the European capital markets enterprise data management community, to explore how data strategy is evolving to drive business outcomes and speed to market in changing times.

GUIDE

Regulatory Data Handbook 2023 – Eleventh Edition

Welcome to the eleventh edition of A-Team Group’s Regulatory Data Handbook, a popular publication that covers new regulations in capital markets, tracks regulatory change, and provides advice on the data, data management and implementation requirements of more than 30 regulations across UK, European, US and Asia-Pacific capital markets. This edition of the handbook includes new...