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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That framing of “best” execution sounds like another kind of soft dollar. Ripe for abuse
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“Here’s all my trading volume in exchange for your virtue points which I can show off in my marketing to win more AUM”
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MIFID II Best Ex went from "all reasonable" to "all sufficient" steps. I'm guessing the expectation is that one is able to demonstrate how the onboarding/evaluation/off-boarding process itself allows one to meet Best Ex obligations?
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("Best Ex" being something to be achieved in aggregate, rather than order by order.)
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so points remains…potentially not best price then?