Best execution

Best execution obligations in Energy, Power & Commodities are no longer confined to financial instruments: the Commodity Futures Trading Commission has steadily extended its scrutiny of execution quality standards to commodity derivatives and swap transactions, while the Federal Energy Regulatory Commission holds parallel authority over wholesale power and gas markets where price manipulation and order routing practices intersect with execution duties. The European Securities and Markets Authority's MiFID II best execution regime adds a third layer for firms trading on EU venues, requiring systematic documentation of execution factors across commodity derivatives that many cross-border energy desks are still reconciling with their internal workflows.