An important aim and consequence of the MiFID regime for investment firms has been the introduction of competition, resulting in the establishment of multiple equity and derivatives exchanges. Banks and investment firms need to consider how they will manage the multitude of execution venue-choices in their duty of care towards clients for the MiFID II enhanced Best Execution requirements.
TOM (The Order Machine) plays an important role in this era of multiple exchanges and aims to contribute to the understanding and implementation of the MiFID II framework. As part of this effort TOM has previously published a third-party, quantitative, report analyzing liquidity across exchanges in Dutch equity options.[1]
TOM (The Order Machine) now publishes information of a qualitative nature: a legal opinion (http://bit.ly/1UeBF5R) by global law firm Norton Rose Fulbright on the application of Best Execution rules in the context of routing client orders. The opinion discusses to what extent there is a requirement to route to multiple exchanges. It also describes to what extent the use of an automated order router is advised in order to comply with these requirements.
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MiFID II/Best Execution Legal Opinion With Regard To Routing To Multiple Trading Venues
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