Equity Best Execution policy
What is Best Execution?
As a dealer-member of IIROC (Investment Industry Regulatory Organization of Canada), we have an obligation to ensure that clients are receiving the most advantageous execution on their equity orders based on several factors (see factors listed within the document).
How do we achieve Best Execution?
Edward Jones employs "Smart Order Router" technology to ensure the best price and most advantageous execution are obtained for client orders.
Why is this important to our clients?
We want to ensure every order we enter on behalf of our clients gets the best possible price, and that all orders have access to the most timely executions as our clients best interest always come first.
This policy is issued pursuant to, and in compliance with, Investment Industry Regulatory Organization of Canada (“IIROC”) Rule 3100 Best Execution of Client Orders. Edward Jones does not rely on intermediaries for any of their client order execution. In relation to order execution, Edward Jones is required to obtain the most advantageous execution terms reasonably available under the circumstances when executing client orders. Edward Jones is required to take into account a range of execution factors and determine their relative importance based on the characteristics of our clients, the orders that we receive and the markets in which we operate. These factors include but are not limited to:
- Prevailing market conditions.
- The direction of the market for the security being traded.
- The depth of the posted market.
- The prices and volume of previous trades.
- The size of the spread.
- The liquidity of the security.
An order executed on one or more marketplaces will be reported to the client using separate trade confirmations for each marketplace or designated as an average price on multiple markets on the same trade confirmation. If our clients require additional information regarding the marketplace(s) their trade executed on, that information is available upon request.
Order Routing Technology
Edward Jones uses “Smart Order Router” (SOR) technology to ensure the best available price is obtained for client orders. The SOR strategies are managed by Edward Jones and are based on best execution policies and procedures which are reviewed on a regular basis. Traders may choose not to employ the SOR and instead book directly to a marketplace if manually working an order may be more advantageous to the client. Prior to doing so, all traders will verify through the consolidated quote that no “trade-through” will result. Traders will make these decisions in accordance with Best Execution standards and in an effort to benefit our clients.
Marketplaces and Venues
To achieve best execution for our clients, Edward Jones subscribes to LIT Canadian marketplaces (both protected and unprotected) to ensure compliance with UMIR, IIROC Rule 3100 and NI 23-101. We also have exposure to Alternative Trading Systems (ATS) and/or dark venues to identify price improvements and liquidity when available.
Transactions executed on a non-Canadian marketplace, including the US marketplace, will be executed in accordance with the securities rules and regulations of that jurisdiction and will be subject to those order handling and routing practices.
When securities are interlisted, Edward Jones will execute orders on a Canadian marketplace.
In cases where clients provide specific instructions on routing, orders may be handled on a best efforts bases while adhering to market conduct rules, regulatory requirements and securities laws. Our regulatory and legal obligations as executing broker may prevent client instructions from being met.
Conflicts of Interest
- Conflicts on Order Routing - Edward Jones does not have a material ownership interest in any of the exchanges or marketplaces in Canada, therefore, we do not have a conflict of interest when establishing order routing priorities.
- Treatment of Marketplace Fees and Rebates - Certain marketplaces may provide rebates and/or credits against fees in return for routing of orders. Any remuneration that Edward Jones receives for orders reduces the execution costs. If we accrue a positive rebate, it is not accepted. Marketplace fees and rebates are considered as part of overall costs when fulfilling our best ex obligations.
Trade Desk Hours of Operation
The Edward Jones trading desk will accept and enter orders between the hours of 9:30 am (EST) and 4:00 pm (EST), Monday through Friday, not including Canadian holidays. Edward Jones in general does not participate in after-hours trading. Orders received outside of the hours of 9:30 am to 4:00 pm will be queued for the next business day.
- Orders received prior to the opening will be entered into pre-opening book of the principal marketplace for execution on the opening. Orders will not be routed to an alternative marketplace, unless so requested by a client.
Orders received after the principal market close will be entered to the pre-opening book of the principal marketplace on the following business day.
- Orders received during the principal marketplace operating hours will be entered into the best market at the time of entry. The "best market" is determined by our Smart Order Router technology
- Orders (or portions) that are unfilled will be booked to the principal marketplace until they are completed, expired, changed or cancelled.