The CNBV received comments on the draft presented to Conamer on February 19, and built a new proposal based on the observations.
They redefine proposals
The redefinition of the proposals was as follows, the CNBV specified.
The preliminary draft of the new article 74 Bis establishes that the brokerage houses must have a methodology for the transmission of passive positions to the stock exchanges; which must be approved by its CEO, and may not establish conditions that generate biases that lead to select or favor one stock exchange to the detriment of another.
For its part, the draft in Article 76 Bis, preserves the objective of protecting the investor, whatever it may be (small or large investor), maintaining for this, the price and volume factors as the main elements to close an operation.
On the other hand, a third condition is added in case the price and volume factors are not enough to decide in which exchange to execute the client’s instruction, the above derived from the fact that the price is the same on both stock exchanges and the available volume is sufficient to satisfy the client’s instruction on any of the stock exchanges.
In this case, the brokerage houses must establish the selection criteria of the stock exchange for the execution of the client’s instruction, through the methodology for transmitting the aforementioned passive positions.
Finally, although the participants commented that in their instructions they do not specify to which exchange they should direct their operations, the vast majority expressed their interest that their instructions to carry out a series of operations at the close of the trading session result in a weighted average price close to the “official closing price”.
In order to meet this request, a fraction was added to article 63, in order to consider a new order (Weighted Average Price at Closing), which will be executed during the period of time in which the sample of facts is taken. will make up the closing price of the stock exchange in which the variable income instrument referred to in the client’s instruction was listed, so the brokerage houses will not be obliged to observe the duty of better execution and must send the order in question to the stock exchange on which the equity instrument that is the object of the order is listed.