On 15 November 2006 the Committee of European Securities Regulators (CESR) asked the European Commission Internal Market and Services DG (Commission Services) for an opinion on issues related to best execution:

  • In what circumstances do the best execution requirements apply to firms who operate by providing quotes and then dealing?
  • What scope may “specific instructions” from a client cover?
  • In what circumstances do portfolio managers and order receivers and transmitters “execute client orders”?

On 19 March 2007 the Commission Services published its opinion on the above issues. In its opinion on the first issue the Commission Services provides:

  • Indicative examples of cases where a firm executes an order on behalf of a client.
  • Indicative examples of transactions where a firm generally does not execute an order on behalf of a client.