European Union strengthens MiFID II Best Execution requirements

The European Union has strengthened the MiFID II regulatory framework to increase transparency, protect investors, and maintain the integrity of financial markets amidst growing complexity in trading platforms and instruments.

Under these regulations, investment firms are obligated to meet Best Execution requirements. This involves more than just establishing procedures; firms must demonstrate, monitor, and regularly review their arrangements to ensure they achieve the best possible outcomes for clients. Firms are required to maintain a detailed and understandable Order Execution Policy that aligns with their actual execution practices.