Best execution services for new asset classes

Broadening best execution

MiFID II expands sell-side best execution rules beyond equities to include most asset classes. In advance of a transaction, you need to establish and explain the venues, liquidity and pricing strategies you’re using.

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Best execution rules for less liquid asset classes

Best execution has been a key pillar of investor protection since MiFID I, particularly for equities. MiFID II extends those rules more broadly, to cover less liquid products, where proving price transparency is a challenge.

Enabling and proving best execution

Like its predecessor, MiFID II demands that firms executing client orders need to establish and agree on policies with their professional and retail clients about how they will achieve best execution in advance.

This includes:

  • Venues you will trade on directly
  • The liquidity partners, banks and brokers you will use to source liquidity or provide execution services
  • Access to sales traders, algorithms or direct market access and under what scenarios.

In each of these scenarios, you have to record and monitor performance as your clients can demand evidence of best execution at any stage. You have to be able to replay scenarios and justify your trading decisions.

A key partner for best execution

We can help you plan and monitor with a key set of tools for choosing sources for liquidity and helping monitor venue performance both historically and in real-time.

Eikon already provides cross market liquidity views for individual equities with both the .x RIC, providing a pan European Best Bid/Offer and Time and Sales, and the Blended Order Book object, providing a customizable view of the cross-market order book.

Eikon also gives you access to the our European Market Share Report, an on-demand reporting tool that provides historical insights in how individual instruments have been traded across Europe.

These and other powerful new views and analytics will extend these aggregation capabilities to incorporate the full range of new trading venues and liquidity sources launched in the post-MiFID environment.

Tick History provides even greater resolution to historical data, providing the ability to replay over 10 years worth of tick-by-tick data across the range of global asset classes.

Fixed Income securities can often pose a challenge for pricing, benchmarking and proving best execution. Pricing Service gives you an independent, global evaluated pricing source covering over 2.5 million fixed income securities, derivatives and bank loans. With over 100 evaluators across the world, the service offers true global coverage with local knowledge, applying consistent and transparent pricing for all evaluations.

Moving forward, we will bring a set of analytics, views and reporting capabilities that will build on top of these products to bring a powerful MiFID II Best Execution capability available through the Eikon desktop as well as a set of services available through the Thomson Reuters Elektron environment. 

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