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  • Best and Timely Execution

    • BC-8.9.2

      Conventional bank licensees must take all reasonable steps to obtain, when executing orders, the best possible result for customers taking into account price, costs, speed, likelihood of execution and settlement, and any other consideration relevant to the execution of the order (subject to Paragraph BC-8.9.5 below).

      Amended: January 2011
      Added: April 2008

    • BC-8.9.3

      Conventional bank licensees must establish and implement effective arrangements for complying with Rule BC-8.9.2 including:

      a) Execution policies for each class of financial instrument;
      b) Maintenance of and disclosure to customers of information regarding execution venues and arrangements for disclosure to customers if orders are to be executed outside regulated markets;
      c) Monitoring of effectiveness of the order execution arrangements and execution policies in order to identify and, where appropriate, correct any deficiencies; and
      d) Maintenance of audit trails to demonstrate to their customers that orders were executed in accordance with the relevant execution policy.

      Added: April 2008

    • BC-8.9.4

      Conventional bank licensees are not required to provide best execution (as defined in Paragraph BC-8.9.5 below) where they have agreed with the customer in writing that they will not provide best execution.

      Amended: January 2011
      Added: April 2008

    • BC-8.9.5

      In determining whether a conventional bank licensee has taken reasonable care to provide the best overall price for a customer in accordance with Rules BC-8.9.2 to BC-8.9.4, the CBB will take into account whether an conventional bank licensee has:

      (a) Executed orders promptly and sequentially;
      (b) Discounted any fees and charges previously disclosed to the customer;
      (c) Disclosed the price at which an order is executed; and
      (d) Taken into account the available range of price sources for the execution of its customers’ transactions. In the case where the conventional bank licensee has access to prices of different regulated financial markets or alternative trading systems, it must execute the transaction at the best overall price available having considered other relevant factors.

      Added: April 2008

    • BC-8.9.6

      Conventional bank licensees may only postpone the execution of a transaction if it is in the best interests of the customer, and the prior consent of the customer has been given, or when circumstances are beyond its control. The conventional bank licensee must maintain a record of all postponements together with the reasons for the postponement.

      Added: April 2008

    • BC-8.9.7

      Factors relevant to whether the postponement of an existing customer order may be in the best interests of the customer include where:

      (a) The customer order is received outside of normal trading hours;
      (b) A foreseeable improvement in the level of liquidity in the financial instrument is likely to enhance the terms on which the conventional bank licensee can execute the order; or
      (c) Executing the order as a series of partial executions over a period of time is likely to improve the terms on which the order as a whole is executed.

      Added: April 2008