Order Execution Policy

1. Overview
2. Scope
2.1 What is the Purpose of this Policy?
2.2 When does the Policy apply?
3. Achieving Best Execution
3.1 What does “Best Execution” mean?
3.2 What factors does the Firm consider to achieve Best Execution?
3.3 What is the Firm’s responsibility when client orders are executed for it by a third-party?
4. Compliance with Client Instructions
5. Choosing an Execution Venue
6. Updating this Policy
7. Consenting to this Policy
8. Contact Details

1. Overview
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This Policy summarises how Clear Capital Markets Limited (“the Firm”) complies with the Financial Conduct Authority’s (FCA) rules for the execution of client orders, known as the “best execution” rules.

These rules originate from the Markets in Financial Instruments Directive 2014/65/EU (MiFID II) and are applied in the UK under relevant FCA rules.

Their purpose is to ensure that investment firms achieve the best possible execution results for investors individually.

2. Scope

2.1 What is the Purpose of this Policy?

The Firm recognises the importance of achieving the best possible result when executing trades for its clients and is required to take all sufficient steps to do so. This is important for maintaining and developing our relationship with our clients.

The Firm strives at all times to act fairly and reasonably in dealing with its clients. In certain cases where the Firm is providing order execution services to its clients, it is required under MiFID II and applicable FCA rules to establish and comply with a policy on best execution. The purpose of this Policy is to set out this obligation to the Firm’s clients in a clear and concise manner.

2.2 When does the Policy apply?

This Policy applies where the Firm acts on clients’ behalf in the execution of orders in relation to any financial instrument which is regulated under MiFID II, and the Firm agrees to provide the best possible result for its clients in the market.

This Policy will not apply when the Firm is not executing an order on clients’ behalf, for example where or to the extent:

a) The Firm follows a client’s specific instructions to execute their order in a particular manner or at a particular price; and

b) The Firm follows a client’s specific instructions to execute a specific part or aspect of an order. This Policy applies to all transactions the Firm arranges or executes on clients’ behalf, whether arranged or executed through affiliated companies or otherwise.

3. Achieving Best Execution

3.1 What does “Best Execution” mean?

“Best execution” means:

a) That the Firm has established this Policy that is designed to achieve the best possible result (considering all relevant factors described below), across all orders on a consistent basis, for any financial instrument covered by MiFID II when placing the orders for execution with execution venues identified in this Policy.

b) That the Firm is committed to comply with this Policy.

c) That the Firm takes steps to monitor, review and update this Policy to ensure that it continues to achieve such results.

d) Complying with the Firm’s best execution obligations under MiFID II does not involve a transaction-by-transaction analysis. Instead, the Firm is required to take all sufficient steps to obtain the best result overall when executing clients’ orders having regard to the execution factors set out in MiFID II and the applicable FCA rules.

3.2 What factors does the Firm consider to achieve Best Execution?

In achieving best execution, the Firm considers several factors (unless otherwise instructed by the client).These include:

a) Price.
b) Costs.
c) Speed.
d) Likelihood of execution and settlement (liquidity).
e) Size.
f) Nature.
g) Type and characteristics of the financial instrument.
h) Characteristics of the possible execution venues.
i) Any other consideration relevant to the execution of the order.

While total consideration (price and costs) are generally key factors, the overall value to the client of a particular transaction may be affected by the other factors listed above. The Firm may conclude that factors other than price and costs are more important in achieving the best possible result for its client.

The relative importance of each of the factors will differ depending on:

a) The client’s categorization as a Retail or Professional client.
b) Any special objectives the client may have in relation to the execution of the order.
c) The characteristics of the client’s order.
d) The characteristics of the financial instruments to which the client’s order relates.
e) The characteristics of the venues (if there are more than one) to which the client’s order may be directed.

The Firm is required to provide an account of the relative importance of the execution factors, with reference to the relevant criteria (see above) and the process by which the Firm determines the relative importance of those factors.

3.3 What is the Firm’s responsibility when client orders are executed for it by a third-party?

The Firm will generally pass a client’s order on to a third-party (which may be a broker and / or an affiliated Firm) to execute a client’s order.

The Firm may also pass an order to a non-affiliated third-party broker or dealer to execute a client order.

In respect of such cases, the Firm will have internal processes and procedures in place to review periodically our choice of third-party brokers and dealers to determine that, considering all the factors specified above, the third-party broker or dealer is providing the best results for client orders on a consistent basis.

In making this determination the Firm will have regard to:

a) Prices offered for the particular type of instrument over time.
b) Average costs per trade charged for the type of trade over time.
c) The Best Execution Policy of, and any other guidance issued by, the relevant broker or dealer from time to time.
4. Compliance with Client Instructions

Where the Firm has accepted a client’s instructions with respect to the execution of an order, whether the Firm has given the client advice on any aspect of it, the Firm will follow those instructions to the extent it is possible for it to do so.

This Policy will not apply where the Firm accepts and follows a client’s specific instructions when executing an order or a specific part of an order, although this Policy may apply to other aspects of the order to the extent that they are not covered by a client’s instructions.

For example, where a client instructs the Firm to execute an order at a particular price (for example, a subscription to subscribe for units in a fund, structured product, or other securities at a specific price), the Firm will execute the order as a specific price quoted to you.

Where a client instructs the Firm to execute an order on a particular venue, the Firm will not be responsible for selecting the venue.

Where a client instructs the Firm to execute an order at a particular time or over a particular period, regardless of the price available, the Firm will endeavor to execute the order at that time or over that period in the best possible manner but will not be responsible for the timing or any of the consequences for price or other factors that may result from the timing of execution.

5. Choosing an Execution Venue

The table below represents the trading venues on which the Firm places significant reliance in order to achieve the best possible result for the execution of instructions to buy or sell investments:

We may also choose to execute your instructions on alternative venues where it appears in a particular case that better execution is available from a broker that the Firm does not ordinarily use, the Firm may use such other brokers on a case-by-case basis.

Factors that the Firm considers in selecting a trading venue include:

a) General prices available.
b) Depth of liquidity.
c) Relative volatility in the market.
d) Speed of execution.
e) Cost of execution.
f) Creditworthiness of the counterparties on the venue or the central counterparty.
g) Quality and cost of clearing and settlement.

In some markets, price volatility may mean that timeliness of execution is a priority. In other markets that have low liquidity, the fact of execution may itself constitute best execution. In other cases, the Firm’s choice of venue may be limited because of the nature of a client’s order or their requirements, e.g. when investment products are more illiquid, there may be little (or no) choice of venue.

The Firm does not receive any remuneration, discount or non-monetary benefit for routing client orders to a particular trading venue or execution venue.Generally, the Firm will review the venues it uses to execute client orders on an annual basis.

6. Updating this Policy

The Firm will update this Policy periodically to consider changes as and when appropriate but at periods of no longer than one year. The Firm expects to post the most recent version of this Policy on its website. If a client would like to receive a copy of the most recent Policy however, please contact the Firm in the manner described in section 8 below.

7. Consenting to this Policy

The Firm obtains client consent to this Policy through the account opening process before the Firm executes orders in instruments admitted to trading on regulated markets or multilateral trading facilities away from a regulated market or multilateral trading facility.

8. Contact Details

If a client has queries about the Policy, they should contact the individual specified below:
Head of Compliance: Mr. Daniel Pellard
Phone: +44 (0) 203 869 6080
Email: enquiries@clear-cm.co.uk