AFS Regulatory Solutions for Clients
For the AFS clients and the clients behind our clients, we provide or will soon provide the following services:
- (umbrella) MIFID II proof Best Execution
AFS’ offering provides you with MIFID II-proof execution of orders. All orders are submitted to the same price discovery process to provide you with the best possible execution. All trades are reported to the correct authorities. Best execution applies to orders directly from the clients of AFS as well as orders for underlying end-client of AFS’ clients. In the latter case the best execution obligation formally rests upon the client who is passing the order to AFS (so called umbrella best execution). The execution policy and infrastructure of AFS enables it to guarantee this overarching best execution.
Whether your order is a large wholesale order, executed by our voice brokers, or a DMA order going through our exchange connectivity, AFS will take care of your regulatory obligations while providing you with a high service level.
In order to comply with MIFID II best execution AFS upgraded their execution procedures and designed in house software named AFS BEST (Best Execution Solutions Two) to fulfill and record all the MIFID II execution requirements.
- Regulatory reporting across several regulatory regimes
- Transaction costs analysis
Transaction Cost Analysis (TCA) will become more important as result of increasing requirements on transparency and investor protection. TCA is multi layered. It’s more than just calculating the fee for trading. It’s also about the costs incurred for clearing and settlement or for financing the trade. Making clear what your real transaction cost is certainly not easy and does take considerable effort. All elements pre-, at- and post- trade must be evaluated.
Another consideration is that the TCA needs to include a way to compare costs. So benchmarking and historical analysis of transaction costs is important. TCA only becomes doable when the data used is standardized and easily available.
In Q2 of 2017 AFS will finalize additional software under AFS BEST to give insight in all cost related to the transaction including an comparison with alternative solutions.
- MIFID II advice