Execution of orders refers to the process of completing a buy or sell request for a financial asset. This process involves transmitting a client’s instruction to a trading venue, matching it with a counterparty, and finalizing the transaction according to specified terms. In digital asset markets, execution speed, price accuracy, and minimal slippage are critical factors for traders. Optimal execution strategies consider market liquidity, volatility, and the technological infrastructure of the trading platform to achieve the best possible outcome for the client.
Context
The execution of orders in digital asset markets is a focal point for technological advancement and regulatory scrutiny. Debates center on ensuring fair and transparent execution practices, particularly concerning issues like front-running and market manipulation in decentralized exchanges. Future developments include leveraging advanced algorithms and improved blockchain infrastructure to facilitate faster, more reliable, and more equitable order fulfillment across various trading venues.
CASPs must now implement ESMA's precise distinctions for order execution services and secure compliant white papers for all legacy tokens by the 2027 deadline.
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