Best Execution Policy

Best Execution Policy
1.
Preliminary provisions
1.1 Introduction
The aim of this Best Execution Policy is to ensure the
compliance with the „Markets in Financial Instruments
Directive“ 2004/39/EC (in the following „MiFID“), having
been implemented in German Law through the
Finanzmarktrichtlinieumsetzungsgesetz
“FRUG”
(in
particular in the Securities Trading Act “WpHG”) when
executing customer orders by respectively via CACEIS
Bank Deutschland GmbH (in the Following „the Bank”) as
securities trading bank.
1.1 Customer classification
In accordance to MiFID/WpHG a Bank has to classify its
customers as “retail clients”, “professional clients” or
“eligible counterparties”. The customers of the Bank have
been classified as “professional clients” or “eligible
counterparties” in the beginning of their relationship with
the Bank. The customers can request a different
classification. Nevertheless, the Bank doesn’t classify
customers as “retail clients” as of its specific business
model.
2.
Use of intermediary
The Bank is offering its customers the trading with Foreign
Exchange (FX) and Money Market instruments (MM) as
well as the trading with subscription rights by using
intermediaries.
2.1 FX/MM deals
The Bank uses for the execution of orders for FX/MM deals
the CACEIS Bank Luxemburg S.A. Luxembourg (CBL) as
intermediary. The traders of CBL are acting in the name
and on behalf of the Bank and may use further
intermediaries for the execution of customer orders. CBL is
executing such orders pursuant to its own Best Execution
Policy.
2.2 Trading with subscription rights
The Bank is forwarding orders for the purchase or selling
of subscription rights traded on a German Stock exchange
to UniCredit Bank AG, Munich (HVB) or Clearstream
Banking Frankfurt AG, Frankfurt am Main (CBF). HVB
respectively CBF is executing such orders pursuant to its
own Best Execution Policy.
The Bank is forwarding orders for the purchase or selling
of subscription rights traded on a foreign Stock Exchange –
on same day or concentrated on maturity date – to the
respective foreign Sub-Custodian. This Sub-Custodian is
either executing such orders pursuant to its own Best
Execution Policy or will forward the orders for execution to
another Party.
01.009.140702.02 - (1 – 3)
3.
Best execution of customer orders
Pursuant to MiFID/WpHG a securities trading bank which
executes customer orders for the purchase or sale of
financial instruments
must take all reasonable steps, in particular by
establishing an execution policy and annually
reviewing such policy, to obtain the best possible result
for its customers; and
ensure that each individual order is executed in
accordance with this execution policy.
A securities trading bank is legally required, when
establishing its execution policy, to take into account all
relevant criteria for obtaining the best possible result, in
particular the prices of the financial instruments, the costs
related to the execution of the order, the speed, the
likelihood of the execution and settlement of the order as
well as the size and nature of the order, and weigh the
criteria by taking into consideration the characteristics of
the customer, the customer order, the financial instrument
and the execution venue.
3.1 Specialties for the execution of FX/MM deals Over the
Counter
FX/MM deals are traded Over the Counter (OTC), i.e. the
execution of customer orders is conducted outside of
organized markets (stock exchanges) and multilateral
trading facilities. The Bank is fulfilling the requirement of
best execution of customer orders, if the Bank executes
the customer order with the quote offered to the customer
after the customer has accepted it, provided that, taking
into account the changing market conditions and the time
elapsed between the offer and acceptance of the quote,
the quote is not manifestly out of date. The Bank is
conducting a market conformity check.
3.2 Specialties when forwarding customer orders to
intermediaries
When forwarding customer orders to intermediaries the
Bank is fulfilling the requirement of best execution of
customer orders, if the Bank is reviewing at least annually
whether the intermediaries commissioned to execute the
customer orders are executing the orders in accordance
with their execution policy, and whether execution via this
intermediaries permanently ensures the best execution of
customer orders. As part of the monitoring activities, the
Bank compares the actual execution of customer orders
with the execution policy of the intermediaries on a random
sampling basis.
Best Execution Policy
4
Pricing and costs
4.1 FX transactions
FX transactions are not traded on a stock exchange. The
deal is concluded with the quote offered by the Bank and
accepted by the customer. There is no payable courtage.
4.2 MM transactions
The interest rates in regard to the intraday- and time
deposit MM transactions are orientated on the attainable
interbank interest rates.
4.3 Transactions with subscription rights
Subscription rights are traded on a stock exchange. The
deal is concluded with the quote obtained by the
intermediary. There is no payable courtage.
4.3 Costs for the execution of orders by a intermediary
The Bank is forwarding customer orders to intermediaries
(see section 2). The costs of the trade do also include
charges made by these intermediaries, if any.
5.
Customer consent
In the case where the Bank is executing orders on behalf
of the customer, the Bank has to inform the customer
about the Best Execution Policy and the customer has to
give its consent to the Best Execution Policy prior the
execution of any order. With receipt of the Best Execution
Policy and on its first request for the execution of an order
the customer is deemed to have accepted the policy.
6.
Final Clauses
6.1 Limited applicability of the Best Execution Policy
If the Bank executes an order according to the customer’s
explicit instructions, it will not be executed in accordance
with this Best Execution Policy. Customers giving
instructions act at their own risk. The Bank will not alert the
customer to this fact in each individual case.
6.2 Regular review of the Best Execution Policy
The Best Execution Policy is reviewed regularly - at least
once a year – and amended if necessary. Customers will
be informed immediately of any significant changes to the
Best Execution Policy by suitable means. The actual
applicable version of the Best Execution Policy can be
accessed
on
the
Bank’s
website
(www.caceis.de/de/standorte/deutschland.html).
CACEIS Bank Deutschland GmbH
CACEIS Bank Deutschland GmbH
01.009.140702.02 – (2 – 3)

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