Swap reforms force best execution rethink
With over-the-counter derivatives migrating to new trading platforms, some asset managers are starting to review their best execution policies. But it’s difficult to know what best execution means in a world of mandatory clearing. By Joe Rennison
The concept of best execution has never sat well with over-the-counter derivatives markets. Asset managers may promise it to their clients, and have policies that claim to deliver it, but because quotes have traditionally been solicited over the phone from a limited number of houses, it is impossible to be sure a better price is not available elsewhere. Now, the arrival of new OTC trading rules –
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