FINRA Rule 5310

Requirements:

• When executing an order for a customer, firms must use reasonable diligence to seek the best:
  • Available market.
  • Reasonably available outcome.
• When determining how to execute an order, firms should consider factors such as:
  • Price.
  • Liquidity.
  • Volatility.
  • Order size.
  • Execution terms.
  • Available markets.
• Firms must use reasonable efforts to execute marketable customer orders promptly and completely.
• Firms may not route orders through an intermediary or third party in a way that results in an inferior outcome for the customer.
• Best execution obligations apply whether a firm acts as an agent for a customer or trades as principal.
• Firms remain responsible for achieving best execution even when they use other firms, brokers, or trading venues to execute customer orders.
• Firms must maintain and oversee order-routing and execution practices designed to support best execution for customer orders.