Best Execution

Best execution ensures trades are carried out on the most favorable terms, reducing costs and meeting fiduciary obligations.

November 24, 2025

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- The obligation to execute client orders in a way that ensures the most favorable terms reasonably available across price, speed, and likelihood of execution.

Scenario:

An asset manager trading large blocks of equities for a pension fund seeks best execution to minimize transaction costs and market impact.

Why This Matters:

Reduces trading costs, preserves returns, meets fiduciary duty, enhances client trust, meets regulatory standards.

The Process:

Traders use algorithms, smart order routing, and multiple venues to achieve optimal price and liquidity. Post-trade analysis reviews execution quality.