How on Earth can an asset manager use ESG metrics in deciding whether what trading counter-parties to use? Don’t they have a legal duty to only choose best execution?https://www.risk.net/derivatives/7916601/buy-side-traders-start-to-cool-on-esg-deficient-dealers …
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Sure, I can see how one could do it. But isnt the very issue that seeking quotes only from ESG-friendly dealers is a bit iffy?
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I guess you’d need to ask a lawyer or someone in finreg. But my reading is that MiFID allows some leeway in interpreting what “best execution” means and doesn’t force firms to o Lu consider price.https://twitter.com/macrocephalopod/status/1481548738271264768 …
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