FCA Eases Best Execution Reporting Requirements During Covid-19 Crisis
- The British regulator offers supervisory flexibility over best execution until the end of June
The Financial Conduct Authority (FCA) has agreed to offer supervisory flexibility to traders and investment managers over their best Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term requirements during the current coronavirus crisis, according to a statement made by Christopher Woodward, interim CEO of FCA.
He said that the UK regulator would not take any enforcement action against firms that do not publish the next reports as required on April 1, as long as they do so no later than June 30.
Nevertheless, traders are expected to continue to take into account current market conditions when determining the relative importance they place on the different execution factors when meeting their obligations, as well as the venues or brokers they rely upon to achieve best execution.
“We would expect firms to consider their use of different types of orders to execute client order and manage risk during market Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term,” Woodward said.
FCA actions
The move follows other FCA actions during the coronavirus crisis, such as the relaxation on recording and reporting of traders’ phone conversations and transactions.
The FCA has been asked by many parts of the financial services industry to help them navigate in this unprecedented time.
The regulator said that it had received hundreds of requests from trade associations and firms for changes to its regulatory approach.
“We want to continue working with firms and consumer organisations to understand how the impact of the pandemic is affecting markets and the harms that consumers may face. We will keep these measures under review especially as new issues arise,” the FCA stated.
The Financial Conduct Authority (FCA) has agreed to offer supervisory flexibility to traders and investment managers over their best Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term requirements during the current coronavirus crisis, according to a statement made by Christopher Woodward, interim CEO of FCA.
He said that the UK regulator would not take any enforcement action against firms that do not publish the next reports as required on April 1, as long as they do so no later than June 30.
Nevertheless, traders are expected to continue to take into account current market conditions when determining the relative importance they place on the different execution factors when meeting their obligations, as well as the venues or brokers they rely upon to achieve best execution.
“We would expect firms to consider their use of different types of orders to execute client order and manage risk during market Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term,” Woodward said.
FCA actions
The move follows other FCA actions during the coronavirus crisis, such as the relaxation on recording and reporting of traders’ phone conversations and transactions.
The FCA has been asked by many parts of the financial services industry to help them navigate in this unprecedented time.
The regulator said that it had received hundreds of requests from trade associations and firms for changes to its regulatory approach.
“We want to continue working with firms and consumer organisations to understand how the impact of the pandemic is affecting markets and the harms that consumers may face. We will keep these measures under review especially as new issues arise,” the FCA stated.