WALLICH & MATTHES B.V. EXECUTION POLICY
This Execution Policy is applicable to voice broker services provided to you by Wallich & Matthes B.V., (“Broker”). This Execution Policy is liable to be amended from time to time.
This execution policy reflects the requirements set by the Markets in Financial Instruments Directive (MiFID). The requirements have been implemented in the Netherlands in the Financial Services Act (Wft).
When providing a brokerage service to you in relation to financial instruments (as set out in Annex 1), the Broker will take reasonable steps to achieve the best overall trading result (“best execution”) for you within the limits set in our policy. Please note that this execution policy does not apply when the Broker acts as an arranger in products, not defined as financial instruments, such as loan notes or deposits.
The Broker’s intention is, so far as possible, to exercise consistent standards and operate the same processes across all markets, clients and financial instruments in which the Broker operates. The Broker also intends to provide you and other market participants with access to (where possible) tradable prices on a non-discriminatory basis. However, the diversity in those markets and instruments, what the Broker knows of your own trading intentions, and the kind of orders that you may place, mean that different factors will have to be taken into account in relation to any particular transaction.
While we take all reasonable steps based on those resources available to us to satisfy ourselves that we have processes in place that can reasonably be expected to lead to delivery of best execution of your orders, we cannot guarantee that we will always be able to provide best execution of every order executed on your behalf.
Exemptions from the provision of Best Execution
Without intending to contradict the intentions expressed above, the Broker does not undertake to provide “best execution” if you fall within any of the following exemptions:
• If you are classified as an Eligible Counterparty you will not be entitled to best execution under the Dutch Financial Act (“Wft”), or equivalent EU rules. This is in line with Article 24 of MiFID which provides that the best execution obligation under Article 21 will not apply.
• In the wholesale OTC derivatives and bond markets (and for the avoidance of doubt this would include derivatives in Equities, Energy and Commodities) in which the Broker operates (and as recognised by the European Commission) it is normal market practice for buyers and sellers to “shop around” by approaching several brokers/dealers for a quote. In these circumstances there is no expectation between the parties that the broker/dealer chosen will owe best execution.
As a sophisticated participant in the wholesale markets, unless you advise us to the contrary, we will assume that this is your normal trading behaviour.
Transactions arranged in a name passing capacity
• Brokers acting in a name passing capacity are receivers and transmitters of orders but in carrying out their activities they do not receive and transmit orders for execution. Therefore the requirement to provide best execution will not apply.
• Where you provide us with a specific instruction in relation to your entire order or any particular aspect of your order the Broker will execute the order in accordance with your instructions. However, please note that in following your instructions, the Broker will be deemed to have taken all reasonable steps to provide the best possible result for you in respect of the order, or aspect of the order, covered by your specific instructions,
Except in exceptional circumstances, the Broker will only deal with Eligible Counterparties and Professional Clients as defined in MiFID.
Because the Broker always intends to handle orders and expressions of interest in an equitable and consistent manner, once a client is classified as an Eligible Counterparty for the purposes of a particular instrument that client may not then elect to be re-classified for the purposes of one transaction of a type it customarily undertakes. Exceptional circumstances may be taken into account at the time, with the consent of the Broker (the Broker may decline to provide a service should a reclassification be requested).
The Broker is able to transact trades on your behalf through the Broker’s customer base in the over the counter (OTC) markets. The Broker will take reasonable measures to ensure that this venue obtains the best possible trading result for its clients, subject to the following factors:
- In the OTC markets in which the Broker operates it can only give clients visibility to prices that have been communicated to the Broker by other clients that operate in the same market, accordingly any “best outcome” will solely be within these limits;
- The Broker cannot allow clients to trade in a market unless it is reasonably satisfied that the client (via an agent or otherwise) is operationally capable of settling the relevant trade;
Monitoring and review
The Broker will monitor the effectiveness of its order execution arrangements and order execution policy in order to identify and, where appropriate, incorporate any amendments to procedures. The Broker will review its order execution arrangements and order execution policy at least annually or whenever a material change occurs that affects its ability to continue to obtain the best possible result for the execution of client orders on a consistent basis. The Broker will notify you of any material changes to its order execution arrangements or order execution policy as described above by posting the information on the Broker’s website.
No Fiduciary Relationship
Our commitment to provide you with “best execution” does not mean that we owe you any fiduciary responsibilities over and above the specific regulatory obligations placed upon us or as may be otherwise contracted between us. You remain responsible for your own investment decisions and the Broker will not be responsible for any market trading loss you suffer as a result of those decisions.
Financial Instruments As Defined by MiFID
(1) Transferable securities;
(2) Money-market instruments;
(3) Units in collective investment undertakings;
(4) Options, futures, swaps, forward rate agreements and any other derivative contracts relating to securities, currencies, interest rates or yields, or other derivatives instruments, financial indices or financial measures which may be settled physically or in cash;
(5) Options, futures, swaps, forward rate agreements and any other derivative contracts relating to commodities that must be settled in cash or may be settled in cash at the option of one of the parties (otherwise than by reason of a default or other termination event);
(6) Options, futures, swaps, and any other derivative contract relating to commodities that can be physically settled provided that they are traded on a regulated market and/or an MTF;
(7) Options, futures, swaps, forwards and any other derivative contracts relating to commodities, that can be physically settled not otherwise mentioned in (6) and not being for commercial purposes, which have the characteristics of other derivative financial instruments, having regard to whether, inter alia, they are cleared and settled through recognised clearing houses or are subject to regular margin calls;
(8) Derivative instruments for the transfer of credit risk;
(9) Financial contracts for differences;
(10) Options, futures, swaps, forward rate agreements and any other derivative contracts relating to climatic variables, freight rates, emission allowances or inflation rates or other official economic statistics that must be settled in cash or may be settled in cash at the option of one of the parties (otherwise than by reason of a default or other termination event), as well as any other derivative contracts relating to assets, rights, obligations, indices and measures not otherwise mentioned in this Section, which have the characteristics of other derivative financial instruments, having regard to whether, inter alia, they are traded on a regulated market or an MTF, are cleared and settled through recognised clearing houses or are subject to regular margin calls.
Under the supervision of: Autoriteit Financiële Markten and De Nederlandsche Bank.