Best Execution under MiFID II
MiFID II Best Execution rules require investment firms to take sufficient steps to obtain the best possible result for their clients when executing orders in financial instruments, whilst taking into account all relevant factors.
In the case of professional clients, these factors are costs, speed, likelihood of execution, settlement, size, nature and any other factor relevant to the execution of the order. However, in the case of retail clients, the relevant factor is the total consideration, representing the price of the financial instrument and the costs relating to execution.
MiFID II Best Execution rules also require:
Execution venues to provide on a quarterly basis relevant data to measure the quality of execution in relevant financial instruments. This is represented by the following tables:
Table 1 – Information on the type of execution venue
Table 2 – Information on the type of financial instrument
Table 3 - Price information - Intraday
Table 4 – Price information - Daily
Table 5 – Costs information
Table 6 – Likelihood of execution for each trading day
Table 9 – Additional information relating to request for quote execution venues.
The best execution information required for tables 7 and 8 is not provided. This information relates to continuous auction order book and continuous quote driven trading systems which we do not operate.
The reports will be available on this page for a minimum of two years.
If you have any questions regarding Best Execution please contact CB.MiFIDIIHelpdesk@lloydsbanking.com
Investment firms to summarise and publish on an annual basis for each class of financial instruments the top 5 execution venues in terms of trading volumes where the firm executed client orders in the preceding year and also provide information on the quality of execution that was obtained in the previous year. This is represented by the following tables:
Download the annual reports here:
Retail classified clients
Professional classified clients