1. Introduction
1. MiFID requires investment firms to take all reasonable steps [Article 27 of MiFID II will further enhance this standard by replacing “reasonable steps” with “sufficient steps”.] to obtain the best possible result for their clients (Article 21 of MiFID and Article 44 of the MiFID Implementing Directive). In doing so, firms should first have a thorough understanding of their best execution obligations.
2. Any firm that executes orders for retail clients in CFDs or other speculative products is required to ensure that orders are executed on terms most favourable to the client (Recital 33 of MiFID). Firms that receive and transmit orders for retail clients in CFDs or other speculative products also have a corresponding duty to act in the client’s best interests when placing orders with other entities for execution (Article 19(1) of MiFID and Article 45 of the MiFID Implementing Directive), although this section does not focus on reception and transmission activ
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