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  • Best and Timely Execution

    • BC-2.7.2

      Investment firm licensees must take all reasonable steps to obtain, when executing orders, the best possible result for clients taking into account price, costs, speed, likelihood of execution and settlement, and any other consideration relevant to the execution of the order.

    • BC-2.7.3

      Investment firm licensees must establish and implement effective arrangements for complying with Rule BC-2.7.2:

      a) Execution policies for each class of financial instrument;
      b) Maintenance and disclosure to clients of information regarding execution venues and arrangements for disclosure to clients 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 clients that orders were executed in accordance with the relevant execution policy.
      Amended: January 2007

    • BC-2.7.4

      Investment firm licensees are not required to provide best execution where they have agreed with the client in writing that they will not provide best execution.

    • BC-2.7.5

      In determining whether an investment firm licensee has taken reasonable care to provide the best overall price for a client in accordance with Rules BC-2.7.2 to BC-2.7.4, the CBB will take into account whether an investment firm licensee has:

      (a) Executed orders promptly and sequentially;
      (b) Discounted any fees and charges previously disclosed to the client;
      (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 clients' transactions. In the case where the investment firm 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.
      Amended: January 2007

    • BC-2.7.6

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

      Amended: January 2007

    • BC-2.7.7

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

      (a) The client 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 investment firm 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.
      Amended: January 2007