6.1.1. Application

COB 6 applies to an Authorised Firm that executes orders for or on behalf of a Client. The Rules in COB 6 do not apply to an Authorised Firm with respect to any transaction which:

1. (a) it undertakes with a Market Counterparty, except for COB 6.2.9;
2. (b) it carries out for the purposes of managing a Fund of which it is the Fund Manager; or
3. (c) is an Execution-Only Transaction. Where an Authorised Firm executes an Execution-Only Transaction with or for a Client, the Authorised Firm is not relieved from providing best execution in respect of any aspect of that transaction which lies outside the Client’s specific instructions.

6.1.2. Best execution obligation

Subject to COB 6.1.3, when an Authorised Firm executes any transaction with or for a Client in an Investment, it must take all sufficient steps to obtain the best possible result for the Client taking into account the information available, including the following factors:

• (a) price;
• (b) costs;
• (c) speed;
• (d) likelihood of execution and settlement;
• (e) size;
• (f) nature; and
• (g) any other consideration relevant to execution

6.1.3. Best execution with or for Retail Clients

When an Authorised Firm executes a transaction in an Investment for a Retail Client, the best possible result will be determined by reference to the price and other costs, including execution venue fees, clearing and settlement fees and any other fees paid to third parties involved in the execution of the order.

6.1.4. Specific instructions

When an Authorised Firm executes a transaction in accordance with specific instructions from the Client, it should be treated as having met its best execution obligation in relation to that part of the order covered by those instructions.