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: Adding cloud to your high performance trading infrastructure

Adding cloud to high performance trading infrastructure offers the benefits of scalability, faster development, and lower capex costs – but can it meet required speeds of data delivery, does it limit the extent of available data, and how can low-latency data be sourced in the cloud? Still more, is it feasible to run a complete...

BLOG

A-Team’s TradingTech Insight Briefing Returns to New York June 16

Following our recent highly successful TradingTech Summit in London, A-Team’s TradingTech Insight Briefing returns to New York on June 16, after a two-year hiatus due to the Covid pandemic. As always, industry practitioners will gather in person to discuss the latest trends, challenges and innovations in trading technology, and network with their peers at the...

EVENT

Data Management Summit London

Now in its 13th year, the Data Management Summit (DMS) in London brings together the European capital markets enterprise data management community, to explore the evolution of data strategy and how to leverage data to drive compliance and business insight.

GUIDE

Trading Regulations Handbook 2022

Welcome to the third edition of A-Team Group’s Trading Regulations Handbook, a publication designed to help you gain a full understanding of regulations that have an impact on your trading operations, data and technology. The handbook provides details of each regulation and its requirements, as well as ‘at-a-glance’ summaries, regulatory timelines and compliance deadlines, and...