IDEAS home Printed from https://ideas.repec.org/a/eme/jrfpps/15265940610664979.html
   My bibliography  Save this article

Best execution compliance: new techniques for managing compliance risk

Author

Listed:
  • Michael Mainelli
  • Mark Yeandle

Abstract

Purpose - New regulatory initiatives, principally MiFID and RegNMS, challenge wholesale financial firms to prove that they can provide best execution for their clients. This article aims to outline the background to the problem and suggest that current research into SVM/DAPR applications may provide a practical approach. Design/methodology/approach - The article presents a desk review of current issues in “best execution” based on work with European brokers and others, followed by initial, promising trial of SVM/DAPR. Findings - The article finds that brokers need automated tools, e.g. “sifting engines” that help them to focus compliance efforts on anomalous trades. Research limitations/implications - Although brokers appear to need assistance in identifying anomalous trades, whether they place significant effort in compliance depends on regulatory enforcement. Originality/value - MiFID and RegNMS will require changes in current practice. SVM/DAPR approaches appear to be worth further investigation.

Suggested Citation

  • Michael Mainelli & Mark Yeandle, 2006. "Best execution compliance: new techniques for managing compliance risk," Journal of Risk Finance, Emerald Group Publishing Limited, vol. 7(3), pages 301-312, May.
    • Handle: RePEc:eme:jrfpps:15265940610664979
    DOI: 10.1108/15265940610664979
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1108/15265940610664979/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://www.emerald.com/insight/content/doi/10.1108/15265940610664979/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1108/15265940610664979?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eme:jrfpps:15265940610664979. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Emerald Support (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.