# Best execution

`kaal:entity:best-execution`

**Status.** derived

This node is assembled mechanically from the 5 claims that carry the concept tag `best-execution`. It is a roster of what the corpus says under this term. It is **not** an adjudicated definition: no single statement here has been ruled canonical, and no first-appearance call has been made. Read the claims and judge for yourself.

## Every claim under this term

5 claims across 5 works, 2013 to 2019.

**2013**

- [2337268-036](https://wulfkaal.github.io/claims/2337268-036) [normative/argued] -- Because investment advisers owe a duty to obtain best execution for customer orders, they ought to evaluate the executions carried out on their clients' behalf on a periodic basis.
  > investment advisers are subject to a duty to obtain the best execution for customer orders,103 investment advisers ought to periodically evaluate the executions on behalf of their clients.
  Wulf A. Kaal, Investment Adviser Regulation (2013). SSRN: https://ssrn.com/abstract=2337268

**2016**

- [2715083-015](https://wulfkaal.github.io/claims/2715083-015) [failure/argued] *(failure mode)* -- Best execution is a leading instance of nominal confluence: the obligation is nominally the same, but it is far more complicated and burdensome for the mutual fund manager than for the hedge fund adviser.
  > Best execution obligations are similar but practically different for private and mutual fund advisers. In practice, best execution requirements are far more complicated and burdensome for the mutual fund manager than for the hedge fund adviser.
  Kaal, Confluence of Mutual and Private Funds (2016). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2715083

**2017**

- [2998033-019](https://wulfkaal.github.io/claims/2998033-019) [mechanism/evidenced] -- Recording all fund transactions in the public blockchain lets an adviser demonstrate compliance with its best execution obligations and locate and audit past trades, converting a compliance burden into an automatic byproduct of trading.
  > Moreover, by recording all transactions in the public blockchain, LendingRobot is able to comply with its best execution obligations as well as locate and audit past trades.
  Wulf A. Kaal, Blockchain Innovation for Private Investment Funds (2017). SSRN: https://ssrn.com/abstract=2998033

**2019**

- [3409548-036](https://wulfkaal.github.io/claims/3409548-036) [design/argued] -- Recording all transactions in the public blockchain is what lets LendingRobot comply with its best execution obligations, making the public ledger a compliance instrument and not only an investment record.
  > Moreover, by recording all transactions in the public blockchain, LendingRobot is able to comply with its best execution
  Kaal, Financial Technology and Hedge Funds (2019). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3409548
- [3411110-019](https://wulfkaal.github.io/claims/3411110-019) [failure/argued] *(failure mode)* -- A blockchain based offering routed through a single broker produces a specific cluster of risks, including limited price discovery, no market making and therefore less liquidity, constrained short selling, impaired best execution, and no print to a tape or national exchange.
  > Several additional risks are associated with the limited trading and associated limited material liquidity that results from a blockchain-based offering involving only one broker.
  Wulf A. Kaal, Samuel Evans, Blockchain-Based Securities Offerings (2019). SSRN: https://ssrn.com/abstract=3411110

## Verify

Every claim above resolves to a record carrying a verbatim source quote, the sha256 of the source PDF, and a preformatted citation. Nothing here asks to be taken on trust.

    curl -s https://wulfkaal.github.io/entities/best-execution.md | sha256sum

**Canonical form.** This markdown file is the canonical hashed representation of this entity node. Its sha256 is the content hash.