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  • CRA-12.5 CRA-12.5 Execution of Clients' Orders

    • CRA-12.5.1

      Licensees must take sufficient steps to obtain, when executing orders, the best possible result for its clients taking into account the best execution factors of price, costs, speed, likelihood of execution and settlement, size, nature or any other consideration relevant to the execution of the order.

      Added: April 2019

    • CRA-12.5.2

      Whenever there is a specific instruction from a client, the licensee must execute the order following the specific instruction. The licensee shall be deemed to have satisfied its obligations to take all reasonable steps to obtain the best possible result for a client to the extent that it executes an order or a specific aspect of the order following specific instructions from a client relating to the order or the specific aspect of the order.

      Added: April 2019

    • Order Execution Policy

      • CRA-12.5.3

        Licensees must establish and implement an order execution policy to allow it to obtain, for its client orders, the best possible result.

        Added: April 2019

      • CRA-12.5.4

        Licensees must ensure that the trading venue or entity it selects will enable it to obtain results for its clients that are at least as good as the results that it reasonably could expect from using alternative entities.

        Added: April 2019

      • CRA-12.5.5

        Licensees must provide appropriate information to their clients on their order execution policy. That information must explain clearly, in sufficient detail and in a way that can easily be understood by clients.

        Added: April 2019

      • CRA-12.5.6

        Licensees must notify clients of any material changes to its order execution arrangements or order execution policy.

        Added: April 2019

    • Monitoring and Review

      • CRA-12.5.7

        A licensee must review, at least on an annual basis, its order execution policy and order execution arrangements.

        Added: April 2019

      • CRA-12.5.8

        A licensee must demonstrate to its clients, at their request, that it has executed their orders in accordance with the licensee's order execution policy and it must also ensure that it is able to demonstrate to the CBB upon request that the licensee is in compliance with this Module.

        Amended: April 2023
        Added: April 2019

    • Client Order Handling Rules

      • CRA-12.5.9

        When carrying out client orders, a licensee must implement procedures and arrangements which provide for the prompt, fair and expeditious execution of client orders, relative to the trading interests of the licensee.

        Added: April 2019

      • CRA-12.5.10

        A licensee must not misuse information relating to pending client orders, and shall take all reasonable steps to prevent the misuse of such information by any of its relevant persons.

        Added: April 2019

      • CRA-12.5.11

        A licensee must not carry out a client order or a transaction for own account in aggregation with another client order unless the following conditions are met:

        (a) It is unlikely that the aggregation of orders and transactions will work overall to the disadvantage of a client whose order is to be aggregated;
        (b) It is disclosed to each client whose order is to be aggregated that the effect of aggregation may work to its disadvantage in relation to a particular order;
        (c) An order allocation policy must be established and effectively implemented, provided for the fair allocation of aggregated orders and transactions, including how the volume and price of orders determines allocations and the treatment of partial executions.
        Amended: April 2023
        Added: April 2019

      • CRA-12.5.12

        Where a licensee has aggregated transactions for own account with one or more clients' orders, such licensee must not allocate the related trades in a way that is detrimental to a Client.

        Added: April 2019

      • CRA-12.5.13

        Where a licensee aggregates a client order, with a transaction for own account and the aggregated order is partially executed, the licensee must allocate the related trades to the client in priority to itself, except where the licensee is able to demonstrate on reasonable grounds that without the combination it would not have been able to carry out the order on such advantageous terms, or at all, in which event it may allocate the transaction for own account proportionally, in accordance with its order allocation policy.

        Amended: April 2023
        Added: April 2019

    • Selection of Trading Venues by Licensees

      • CRA-12.5.14

        Licensees must not structure or charge its commission in such a way as to discriminate unfairly between trading venues.

        Added: April 2019