Regulatory Alerts2022-12-14
Regulation Best Execution
The Securities and Exchange Commission proposes new rules establishing a comprehensive best execution standard that requires broker-dealers to implement detailed policies and procedures for executing customer orders at the most favorable terms reasonably available. The framework mandates heightened compliance measures for retail transactions involving conflicts of interest, such as payment for order flow and internalization, by requiring broker-dealers to assess broader market options and document their execution determinations. Additionally, the proposal obligates broker-dealers to conduct quarterly reviews of execution quality against alternative markets and submit an annual effectiveness report to their governing bodies.
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