Policy
Our Policy is to provide best execution for all orders, taking into account price, costs, speed, likelihood of execution and settlement, size, nature and any other consideration relevant to the execution of the order in question. The best possible result for a particular transaction will be determined by the relative importance given by us to these factors, which will in turn determine the choice of execution venue. In determining the relative importance of these factors, we will take into account the following criteria:
- your own characteristics, including your categorisation as a professional client;
- the characteristics of your order;
- the characteristics of the instruments or products that are the subject of your order; and
- the characteristics of the execution venues on which your order can be executed.
Although we would ordinarily expect price to have a high degree of importance relative to the other specified factors, its precise importance in the context of any given order will depend upon the criteria specified above and may also be affected by any specific instructions that you give to us. Subject to any specific customer instruction, the timing of execution and the market impact of an order will be a major consideration, for an order which is large relative to market volumes.
If specific instruction is applied to an order (for example, to execute on a particular venue) we shall follow the instruction and the Best Execution obligation will not extend to any aspect of the execution that is covered by the specific instruction.
Arrangements
We have established electronic systems to access exchanges and other major market where relevant securities may be traded so that we can achieve the best prices at any given time. We include venues that we believe will enable us to obtain, on a consistent basis, the best possible result when we execute orders. Access to exchanges is either directly as a member or DMA via another member, or via a local broker. The available execution venues will be reviewed regularly. Orders may be executed through the following different types of venues open to the Firm including:
- Markets having regulated market status under MiFID;
- Trading platforms having multilateral trading facility (“MTF”) status under MiFID.
The attached schedule lists the principal European Stock Exchanges and other venues where client orders for shares will be executed.
The nature of the financial instrument that is to be traded as part of a client order will determine the specific venues that we may be able to use to execute the order. For specific products we may have access to only one type of venue or only a single venue. Where alternative venues are available, liquidity and price are likely to the determinant factors in deciding which venue to access.
When executing orders through local brokers, our traders will monitor the prices achieved.
Most orders will be individually worked by our traders, although in some cases it may be appropriate to place the execution into algorithmic systems offered by specialist brokers.
Monitoring
We monitor the effectiveness of our order execution arrangements (including the Policy) to identify and, where appropriate, correct any deficiencies.
We shall monitor the performance of all execution on a real time basis and will also subscribe to external scrutiny in order to obtain information on performance relative to competitors. We have arranged to capture, and retain for five years, market data so that we can demonstrate our performance if requested to do so by our clients.
We review on a regular basis whether the execution venues included in the Policy provide the best possible result and whether we need to make any changes. We undertake a review of our order execution arrangements and the Policy at least annually.
This Policy will be maintained, and updated as necessary, on our website, www.redburn.com.
Schedule of Principal Execution Venues
European Stock Exchanges
- Vienna Stock Exchange
- Euronext Brussels
- Copenhagen Stock Exchange
- Helsinki Stock Exchange
- Euronext Paris
- Borse Berlin-Bremen
- Borsen Hamburg und Hannover
- Borse Munchen
- Deutsche Borse Group
- Frankfurt Stock Exchange
- Athens Stock Exchange
- Borsa Italiana
- Euronext Amsterdam
- Oslo Stock Exchange
- Euronext Lisbon
- Bolsa de Valores Barcelona
- Bolsa de Valores Bilboa
- Madrid Stock Exchange
- Mercado Oficial Español de Futuros y Opciones
- Bolsa de Valores de Valencia
- Nordic Growth Market
- Stockholm Stock Exchange
- Swiss Exchange
- London Stock Exchange
Multilateral Trading Facilities
- Chi-X
- Turquoise
- BATS Europe
- NASDAQ OMX Europe