3126. Review of best execution policies and procedures

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    1. A Dealer Member must review its best execution policies and procedures at least annually, and whenever there is a material change to the trading environment or market structure that may impact a Dealer Member’s ability to achieve best execution for its clients.  The Dealer Member must consider whether more frequent reviews of its policies and procedures on best execution are necessary based on the size and scope its business.  
    2. A Dealer Member must outline a process to review its policies and procedures on best execution, including a description of its governance structure, that specifies the following:
      1. who will conduct the review,
      2. what information sources will be used, 
      3. the review procedures that will be employed,
      4. a description of any specific events that will trigger a review in addition to annual reviews,
      5. how the Dealer Member evaluates whether its policies and procedures for best execution are effective in achieving best execution, and
      6. who will receive reports of the results.
    3. A Dealer Member must retain records of its reviews of its policies and procedures on best execution, including any material decisions made and any changes to them, in accordance with the record retention requirements in section 3803. 
    4. A Dealer Member must promptly correct any deficiencies identified in the course of its review of its policies and procedures on best execution.

    There is no history log for this rule.

    There is no history log for this rule.