Best and Timely Execution
BC-9.9.2
Islamic bank licensees must take all reasonable steps to obtain, when executing orders, the best possible result forcustomers 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-9.9.5 below).Amended: January 2011
Added: April 2008BC-9.9.3
Islamic bank licensees must establish and implement effective arrangements for complying with Rule BC-9.9.2:a) Execution policies for each class offinancial instrument ;b) Maintenance of and disclosure tocustomers of information regarding execution venues and arrangements for disclosure tocustomers 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; andd) Maintenance of audit trails to demonstrate to theircustomers that orders were executed in accordance with the relevant execution policy.Added: April 08BC-9.9.4
This Paragraph was deleted in July 2015.
Deleted: July 2015
Amended: January 2011
Added: April 2008BC-9.9.5
In determining whether an
Islamic bank licensee has taken reasonable care to provide the best overall price for acustomer in accordance with Rules BC-9.9.2 to BC-9.9.4, the CBB will take into account whether anIslamic bank licensee has:(a) Executed orders promptly and sequentially;(b) Discounted any fees and charges previously disclosed to thecustomer ;(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 itscustomers' transactions. In the case where theIslamic 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 08BC-9.9.6
Islamic bank licensees may only postpone the execution of a transaction if it is in the best interests of thecustomer , and the prior consent of thecustomer has been given, or when circumstances are beyond its control. TheIslamic bank licensee must maintain a record of all postponements together with the reasons for the postponement.Added: April 08BC-9.9.7
Factors relevant to whether the postponement of an existing
customer order may be in the best interests of thecustomer include where:(a) Thecustomer order is received outside of normal trading hours;(b) A foreseeable improvement in the level of liquidity in thefinancial instrument is likely to enhance the terms on which theIslamic 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 08