Regulatory Alerts2018-06-28
Obligation to Execute Client Orders at the Best Market Conditions
The Commission for the Organization and Supervision of Stock Exchange Operations (COSOB) issued this directive on June 28, 2018, to enforce Article 43 of Regulation COSOB No. 15-01 regarding the execution of client orders at the best market conditions. The document mandates that Intermediaries in Stock Exchange Operations (IOBs) must modify their orders to execute client limit orders at the best possible price when acting as the sole counterparty, while establishing priority rules and chronological re-submission protocols when other IOBs hold conflicting orders. Strict compliance with these provisions is required from all IOBs and public prosecutors, supported by an extended order entry period managed by the Stock Exchange Clearing and Settlement Company (SGBV).