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What Is the Regulatory Concept of ‘Best Execution’ in Finance?

Best execution is a regulatory requirement for broker-dealers to take all reasonable steps to obtain the most favorable terms for their clients' orders. This goes beyond just price and includes factors like speed, likelihood of execution, and order size.

While the specific rules vary by jurisdiction, the core principle is prioritizing the client's financial interest. Dark pools must demonstrate that their execution quality meets this standard.

What Is the “Best Execution” Rule and How Does PFOF Challenge Its Spirit?
How Does the “Moneyness” of an Option Affect the Likelihood of Assignment?
How Does a Broker Manage the Early Assignment Process for a Short Option Holder?
What Is the Significance of ‘Best Execution’ Standards in the Agency Model?