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

Proving Best Execution Depends On Collecting More Data

Subscribe to our newsletter

The best way to accomplish all the aspects of ensuring best execution of trades in a manner compliant with Europe’s MiFID II regulation taking effect next year is by gathering all data, market history and relevant information in one place, says Dermot Harriss, senior vice president at OneMarketData, who spoke in a January 26 webinar, “MiFID II: Data for best execution,” hosted by A-Team Group and sponsored by OneMarketData and Thomson Reuters.

“Then, it’s mapping the data into an accessible database structure which you can use to answer the various questions that the transparency regulations ask of your data,” says Harriss.

Collecting all the information and data into one place can be complicated by multiple reporting, monitoring and control requirements that are part of best execution, observes John Mason, global head, regulatory and market structure propositions, in the financial and risk division of Thomson Reuters.

“The breadth and depth of data that’s required that goes into some of the best execution reports, and where that data is going to come from, particularly when we start looking at the more illiquid assets, means asking if proxies are required to ensure that an adequate benchmark was used to prove best execution,” says Mason.

A promising development for best execution support is that front offices and back offices are starting to find common ground on monitoring trade execution quality, according to Harriss. “They realize particularly that what they’re monitoring on a trading desk is the same as what they will be reporting and are beginning to think of those things as being coherent and not necessarily separate activities,” he says.

Having more venues available in a trading operations infrastructure or feeding into a trade data repository, so data ends up in one place with consistency, boosts the ability of the firm with that infrastructure to prove best execution, according to Mason.

“What makes best execution as we see it, is that you need to be able to prove the quality of your execution in the context of the broader market,” he says. “Making sure you have access to all that venue information, not just from a trading perspective but for the perspective it gives of the market as a whole and execution as a whole. We see this as critical for organizations being able to prove the quality of execution they’ve given their clients.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: Practical considerations for regulatory change management

Regulatory change management has become a norm across financial markets but a challenge for financial institutions that must monitor, manage and adapt to ensure compliance with both minor and major adjustments to obligations. This year is particularly troublesome, with major upgrades to EMIR Refit, Markets in Financial Instruments Directive II (MiFID II) and Markets in...

BLOG

Paving the Way to T+1: Automation is Essential for the UK’s Settlement Shift

By Paul Chambers, Xceptor. With the UK’s move to T+1 settlement cycles expected to be a game-changer for financial markets, the UK Accelerated Settlement Taskforce has been drawing on lessons from North America’s T+1 transition. One such lesson from across the Atlantic is that insufficient automation led to increased manual processing and exception management, putting...

EVENT

RegTech Summit London

Now in its 8th year, the RegTech Summit in London will bring together the RegTech ecosystem to explore how the European capital markets financial industry can leverage technology to drive innovation, cut costs and support regulatory change.

GUIDE

Institutional Digital Assets Handbook 2024

Despite the setback of the FTX collapse, institutional interest in digital assets has grown markedly in the past 12 months, with firms of all sizes now acknowledging participation in some form. While as recently as a year ago, institutional trading firms were taking a cautious stance toward their use, the acceptance of tokenisation, stablecoins, and...