Venue of Execution
What is best execution?
The legal entities (credit institutions, investment firms, investment service providers, insurance
companies, among others) that execute buy and sell orders in financial instruments for customers
must define a best execution policy. When defining a best execution policy, all aspects of
relevance for obtaining the best results for customers must be taken into consideration, in
particular, with respect to prices, costs, speed, likelihood of execution and settlement as well as
size and type of order. The best execution policy shall contain explanations on the various
execution venues on which customer orders are executed, and the factors considered when selecting a
venue of execution.
Execution Venue: Vienna
Reasons that may be considered when selecting one of the markets operated by Wiener Börse AG as
venue of execution:
- High liquidity in continuous trading due to the market making system of Wiener Börse AG that includes specialists and market makers that permanently enter buy and sell orders into the market
- High likelihood of execution in continuous trading due to binding buy and sell orders of the specialists and market makers
- High liquidity in auction trading due to the concentration of liquidity at a certain point in time
- High likelihood of execution due to the availability of all usual types of orders
- High likelihood of settlement due to the central counterparty operating in Austria (CCP.A)
- High quality of execution due to the technical know-how and close cooperation of Wiener Börse AG with its customers
- Transparent price discovery mechanisms based on price-time priority in continuous trading and the principle of matching as many orders as possible in auction trading
- Attractive prices due to the closeness to the fair value of the buy and sell quotes of specialists and market makers
- High speed of execution due to immediate matching in a fully electronic market model