Hong Kong – SFC Best Execution Guide

On Jan. 30, HK SFC issued guidance on conduct for best execution.

  • Issued thematic review of best execution, and effectiveness of control practices.


  • Set standards of conduct, internal controls expected in delivering best execution.
  • Licensed corporations (LCs) should execute client orders on best available terms.
  • Fundamental to market integrity, protect investors, LCs act in client best interest.
  • Now particularly important, in light of increased speed and complexity of trading.
  • Execution automated and electronic, and firms offer more products and services.

Control Measures

  • By governance and management supervision, best execution factors, applicability.
  • Responsibility of staff, controls, monitor arrangements with affiliates, third parties.
  • Take account a range of factors e,g. price, cost, speed and likelihood of execution.