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3121. Best execution factors

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Series 3000: Business Conduct and Client Accounts Rules
    Rule
    1. The policies and procedures for achieving best execution must address the following broad factors when executing all client orders:
      1. the price of the security,
      2. the speed of execution of the client order,
      3. the certainty of execution of the client order, and
      4. the overall cost of the transaction, when costs are passed on to clients.
    2. In addition to the broad factors listed in subsection 3121(1), the  policies and procedures for best execution of client orders for listed securities and foreign-exchange traded securities must address the following specific factors:
      1. the considerations taken into account when determining appropriate routing strategies for client orders,
      2. the considerations  for fair pricing of Opening Orders when determining where to enter an Opening Order,
      3. the considerations when not all Marketplaces are open and available for trading,
      4. how order and trade information from all appropriate Marketplaces, including unprotected Marketplaces and foreign organized regulated markets, is taken into account,
      5. the factors related to executing client orders on unprotected Marketplaces, and
      6. the factors related to sending client orders to a foreign intermediary for execution.
    3. The  policies and procedures for best execution must address the factors used to achieve best execution when manually handling a client order for trades on a Marketplace, including the following “prevailing market conditions”:
      1. the direction of the market for the security,
      2. the depth of the posted market,
      3. the last sale price and the prices and volumes of previous trades,
      4. the size of the spread, and
      5. the liquidity of the security.
    Guidance/Notices

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    History

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    Disciplinary History
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      Jump to another section in Rule 3100
      3101. Introduction
      3102. Business conduct
      3103. Know-your-client
      3110. Responsibility to identify conflicts of interest
      3111. Approved Person responsibility to address conflicts of interest
      3112. Dealer Member responsibility to address conflicts of interest
      3113. Responsibility to disclose conflicts of interest
      3114. Conflicts of interest policies and procedures
      3115. Personal financial dealings
      3116. Offering gratuity
      3117. Mutual fund sales incentives
      3118. Tied selling
      3119. Definitions
      3120. Best execution obligation
      3122. Best execution process
      3123. Non-executing Dealer Member best execution policies and procedures
      3124. Sending orders in bulk to foreign intermediaries
      3125. Fair pricing of over-the-counter securities
      3126. Review of best execution policies and procedures
      3127. Training
      3128. Compliance with the Order Protection Rule
      3129. Disclosure of best execution policies

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