Best execution

Stine Harbo Sørensen

Student thesis: Master thesis

Abstract

Throughout the last 21 years, the investment market has undergone massive changes, which have had a great impact on the possibilities for Investors all over the world to invest in new instrument and on new and different markets. These changes have led to some new regulations, so the investment market can be more effective, and the investor can get more protected. Today there is a regulation set MiFID in the European Union, which have set eye for making the market more effective and the investor more protected. As a result thereof MiFID has implemented the requirement that all investors should get best execution. The focus of this paper is what best execution is to different investors, and how best execution is measured depending on different best execution factors and on different markets. The first part of the theses analyses the term best execution of what is was, and to what is has become. This leads to an examination of, which investors that are affected by best execution, and what their choice of investment is. In the second part of the paper, it is examined whether current regulations for financial institutions are sufficient, and how these have affected best execution. This leads to a look at other investment markets such as United Kingdom and United State of America. In the third part it will be analysed, how best execution is measured for different kind of investors, and what they demand of best execution. Finally, based on the findings, it is determined if the current regulation, and hereunder the term best execution, should be altered, in order to make the financial market more efficient, and in order to give more investor protection, or whether it should be up to the market to regulate the current conditions.

EducationsMSc in Finance and Accounting, (Graduate Programme) Final Thesis
LanguageDanish
Publication date2008
Number of pages102