CEU Electronic Theses and Dissertations, 2024
| Author | Hochel, Jana |
|---|---|
| Title | The Order Execution Quality Landscape: Analysis of CFD Brokers in the European Union |
| Summary | The Second Markets in Financial Instruments Directive of the European Commission (2014) requires financial institutions to take all the sufficient steps to execute an order to obtain the best possible result for a client. The directive mandates compulsory reporting of order execution quality, RTS 27 and RTS 28, to improve price transparency, essential for efficient price discovery. Despite these requirements, there is no central database for order execution reporting in the European Union. Therefore, consumers are not able to conveniently assess these discrepancies. The investors, namely non-sophisticated retail investors, are losing out on the chance to trade on the best terms. In addition to ever-changing market dynamics, brokers trade different assets, trade volumes, number of transactions and user accounts. As a result, the order execution quality differs among brokers in terms of speed and spreads. The objective of this project is to analyse the order execution quality of online CFD brokers operating in Europe. The client organisation provides a comprehensive ranking and review of brokers around the world. The client organisation indicated an interest in analysing the retail order execution landscape using RTS 27 MiFID II reporting. The results of this project could be used to enrich the existing research and ranking. |
| Supervisor | Zoltan Toth |
| Department | Economics MSc |
| Full text | https://www.etd.ceu.edu/2024/hochel_jana.pdf |
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