Asia-Pacific: Best-Execution Regulations on the Way?
While the U.S. and European Union have rules mandating that brokerages find the best possible price for clients, there are currently no equivalents in the Asia-Pacific region. That could change, however, as algorithmic trading, technology advances and buy-side pressure nudge the more developed economies in that direction.
"The buy side is taking increasing control of the trading process and the concept of best execution is gaining traction, although we are still some years behind the U.S., and to a lesser extent Europe, in terms of the availability of alternative trading venues," said Gabe Butler, director of sales in Hong Kong for New York-based agency brokerage Investment Technology Group (ITG). There are more than 40 alternative trading systems (ATSs) in the U.S., and a bevy of platforms have been launched in the EU since the Markets in Financial Instruments Directive (MiFID) became effective late last year.
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