SAXOMARKETS ORDER EXECUTION POLICYEffectiveSeptember - PDF document

1 SAXOMARKETS ORDER EXECUTION POLICYEffec
SAXOMARKETS ORDER EXECUTION POLICYEffectiveSeptember Saxo Markets is a registered Trading Name of Saxo Capital Markets UK Limited40 Bank Street | Canary Wharf | London E14 5DA|T: +44 (0) 20 7151 2000 | F: +44(0)2071512000Registered in England & Wales under registered no: 7413871 | Authorised and regulated by the Financial Conduct Authority SAXO MARKETS 2 of 4 0 08.2020 1.1.UndertheMarketsFinancialInstrumentsDirective(Directive2014/65/EU)(MiFIDII)andtherulesoftheFinancialConductAuthority(FCARules), Saxo CapitalMarketsLimited (Saxo Markets) requiredtoanOrderExecutionPolicy(thePolicy)place.MiFIDtheFCARulesfurtherrequireSaxo Marketstotakeallsufficientstepstoobtainthebestpossibleresultsforitsclients(BestExecution) a consistentbasiswhenexecutingclientorderswhe

2 nplacingorderswith,transmittingordersoth
nplacingorderswith,transmittingordersotherentitiestoexecute. 1.2.ThisPolicyprovidedtohelpclientsunderstandhowSaxo MarketsexecutesclientordershowSaxo MarketssatisfiesitsBestExecutionobligationsthatclientscanmakeaninformedchoicewhethertouseSaxo Markets’services.The Clientshouldensurethattheyhavereadunderstooditscontents. 1.3.Saxo Markets a whollyownedsubsidiarySaxoBankA/S, a privatecompanyincorporated in Denmark (Company No: 15731249) and having its registered office at Philip Heymans Allé 15, DK2900 Hellerup, Denmark (Saxo Bank). Saxo Bank executes all Saxo Markets clientordersourbehalf,whetherareactingasprincipalagenttothetrade.Saxo Marketsdoesnotexecuteclientordersthroughanyotherdealingvenuecounterparty.therefore place reliance on Saxo Bank as oursingle execu

3 tion venue. However, inaccordancewithreg
tion venue. However, inaccordancewithregulatoryrequirements,Saxo Marketsremainssolelyresponsibletoitsclientsfortakingallsufficientstepstoobtainthebestpossibleresultforthem. 1.4.Saxo Marketsrequires Saxo Bank,through an arm’slength service agreement,through fulfillingtherequirementsitsownOrderExecutionPolicy,toimplementprocessesprocedurestoevidencethat,asoursingleexecutionvenue,willdeliverBestExecutionenableSaxo MarketstoitsBestExecutionobligationtoitsclients.addition,Saxo Marketsitsownongoingprocessesplaceformonitoringthequalityexecutionobtainedon the Client’sbehalf bySaxo Bank. Ifthe Clientproceeds placeorderwith Saxo Markets, the Client will be deemed toconsentSaxo Markets executingthatorderaccordancewiththisPolicy. INTRODUCTION SAXO MARKETS 3 of 4

4 0 08.2020 2.1.dealingwithclients,S
0 08.2020 2.1.dealingwithclients,Saxo Marketshas a generaldutytoacthonestly,fairly,professionallythebestinteresttheclient.relationtoorderexecution,Saxo Markets requiredtotakeallsufficientstepstoobtainthebestpossibleresult a consistentbasis. 2.2.The obligation to provide Best Execution mayarise in circumstances where Saxo Markets actinganagencyrisklessprincipalcapacity,wherehave a contractualobligationtowhenSaxo Marketsacting a principalcapacitythe Client isplacing a legitimaterelianceSaxo Marketstoprotecttheirinterestrelationtotheexecution a transaction. 2.3.ThisPolicyappliestoSaxo Markets’ executionordersbehalfretailandprofessional clientsaccordingtotheFCARules.ThisPolicytheBestExecutionobligationnotapplytoEligibleCounterpartiestononMiFIDbusiness. 2.4Sax

5 o Marketswillexecuteorderaccordancewitht
o MarketswillexecuteorderaccordancewiththisPolicyuponacceptancea clientorderwhentherespecificclientinstructionregardingtheexecutionmethod.ThePolicyshouldreadwithSaxo Markets’GeneralBusinessTermsandotherbusinesstermsfromtimetotimegoverningtherelationshipbetweentheclientSaxo Markets 3.1.ExecutionFactors3.1.1.axo Marketsconsideredseveralcriteriathatmightimportanttoclients.ThesearecalledtheExecutionFactors:a.Price – themarketpriceatwhichtheorderexecuted;b.Costs – additional charges thatmay beincurred in executingthe order a particularwayoveraboveSaxo Markets’ normalcharges;Speedfexecution – thiscanbeparticularlyimportantfastmovingmarkets;d.Likelihoodexecutionsettlement – thebestpricelittleuseSaxo arketscannotexecuteatthetransactionfailstoco

6 mplete; SCOPE BEST EXECUTIONOBLIGATION S
mplete; SCOPE BEST EXECUTIONOBLIGATION SAXO MARKETS 4 of 4 0 08.2020 SizeNaturethetransaction – thewaythatSaxo Marketsexecutesanunusualorder(forexample,onethatlargerthanthenormalmarketsizeunusualfeaturessuchasanextendedshortenedsettlementperiod)fferfromthewayexecutes a standardorder;MarketImpact – theeffectthatexecuting a client’sorder,showingtootherketparticipants,mighthaveuponthemarket;andOtherfactorsrelevanttoparticularordertypes – asapplicable. 3.2.ExecutionCriteria3.2.1.TherelativeimportancethatSaxo MarketsattachestotheExecutionFactorsparticularcaseaffectedthecircumstancestheorder.Theseare calledtheExecutionCriteria.a.ClientCharacteristics – professionalclientsmayhavedifferentneedstoretaillients;b.TransactionCharacteristics &

7 #150; suchasthepotentialfortohaveanimpac
#150; suchasthepotentialfortohaveanimpacthemarket;FinancialInstrumentCharacteristics – suchasliquiditywhetherthere a ecognizedcentralizedmarket;d.nueCharacteristics – particur featurestheliquiditysources availabletoaxo Markets; andOtherrelevantcircumstances – asapplicable. 3.3.ExecutionVenues3.3.1.Saxo MarketsrelytheselectionexecutionvenuesusedSaxoBank. A listexecution venuescurrentlyused by SaxoBankpublishedtheir wsite,andupdatedasnecessary.Pleasenotethatexceptionalcircumstances,SaxoBankchoosetoexecuteat a venueentitythatnotincludedthepublishedexecutionvenuelist. 3.3.2.Venuesusedmightinclude:a.Regulatedrkets(RM)b.MultilateralradingFacilities(MTF)SystematicInternalisers(SI)d.LiquidityprovidedfromSaxoBank’sowninternalflowaggregationbookOtherbroker

8 s,dealersmarketmakers SAXO MARKETS 5
s,dealersmarketmakers SAXO MARKETS 5 of 4 0 08.2020 3.3.3.Saxo MarketsregularlyindependentlyreviewstheexecutionvenuesthatSaxoBankselectsordertoprovideourclientswithanadditionalindependent monitoringprocesstohelpensurethataretakingallsufficientstepstodeliverthebestpossibleresultforourclients. 3.3.4.As Saxo Markets has a single execution venue, it continuously applies rigorous checks to Saxo Bank to ensure that they are consistently able to deliver Best Execution for Saxo Markets clients. 3.4.ApplicationtheBestExecutionObligation3.4.1.Saxo Markets willusesufficientendeavourstoactaccordancewiththisPolicydoesnotguaranteethatthebestpossiblepricewillobtainedallcircumstances. herey occas Saxo Markets changes tpriorities giv to texecutiofactorsexecutionscriteriao

9 utlined3.13.2,wheredeemthatexecutionnotl
utlined3.13.2,wheredeemthatexecutionnotleadtothebestpossibleresultaswellasouroverallobligations in respect of our obligations to takenecessary steps to keep anorderlymarket.Therelativerankingthedifferentexecutionfactorscantherefore be dependent upon, for example, the nature of the asset class traded,theliquiditytherelevantmarketandthetimethetrade,whetherthereseveremarketdisruption a systemoutage.Thisrankingreflectsthenuancesdifferencesbetweenmarketsandexchanges,notablywhenlookingattradingexchangeversusOTCproducts. 3.4.2.Saxo Marketsexecutesordersbehalfclients,BestExecutiondetermined onthebasisthetotalconsiderationpaidtotheclient,unlesstheobjectiveexecutiontheorderdictatesotherwise.Totalconsiderationthepricethefinancialinstrumentthecostsrelatedtoexecution,includingal

10 lexpensesincurredtheclientwhicharedirect
lexpensesincurredtheclientwhicharedirectlyrelatedtotheexecutiontheorder suchasvenueexecutionfees,clearingsettlementfeesotherfeespaidtothirdpartiesinvolvedtheexecutiontheorder. 3.4.3.assessingwhetherBestExecutionhasbeenachieved,Saxo Marketsdoesnottakeaccountitsstandardchargesthatwillpaidtheclientirrespectivehowtheorder isexecuted. SAXO MARKETS 6 of 4 0 08.2020 4.1.SpecificInstructions4.1.1.ClientsaskSaxo Marketstoexecutetheirordersaccordancewithspecificinstructions,eithergenerallycaseby casebasis.TotheextentthatSaxo Markets abletoaccommodatesuchrequests,willso.However:a.Wherethespecificinstructionswillresulthighercosts,Saxo Markets reflectthoseadditionalcostsitschargestotheclient.thiscase,Saxo Marketswillnotifytheclientitsrevisedchargesbefo

11 reacceptingtheorder(s).b.Wherethespecifi
reacceptingtheorder(s).b.Wherethespecificinstructionsconflictwithitsnormalprocesses,Saxo Marketswillgivethespecificinstructionsprecedence.ThisresultdifferentoutcomeforthetransactionWherethereconflict,Saxo Marketswillcontinuetofollowitsnormal executionpolicy 4.2.EventClientDefaultotherliquidationevent4.2.1.anEventClientDefault,(e.g.insufficientmargin),otherliquidationevent(e.g.AccountValueShieldTrigger,whereapplicable),Saxo Marketsshallseektoimmediatelyterminate,cancelcloseoutallpartoutstanding positions.Saxo Marketsretainsdiscretionastohowtohandlecloseouts,includingwithrespecttoorderexecution,fillquantity,aggregation,prioritypricing. 4.3.Funds4.3.1FundsarepricedbasedthevaluetheirunderlyingAssets.MostfundswillcalculatepublishpriceeveryworkingreferredtoastheNAV(Ne

12 tAsset value).Therecontinuouspricingfund
tAsset value).TherecontinuouspricingfundunitsthroughoutthetradingtradesareexecutedatthenextavailableNAV.Thisthatthe Clientwillnotknowtheexactnumberunitstheirinvestmentwillresultin,butthe Clientwillgetthebestavailableprice. 4. TRANSACTIONSWHEREBESTEXECUTIONHASLIMITEDSCOPE SAXO MARKETS 7 of 4 0 08.2020 5.1.ExecutionClientOrders5.1.1.Saxo MarketsoffersexecutiononlytradingtoourclientsourparentcompanySaxo Bank executesall Saxo Markets’client orders onour behalfwhether we areactingasprincipalagenttothetrade.Saxo Marketsdoesnotexecuteclientordersthrough anyotherdealingvenuecounterparty. 5.1.2.SaxoBankusesautomatedsystemstorouteexecuteclientordersSaxo Markets dependentSaxoBankforonwardroutingSaxo Marketsclientorderstotheappropriateexecutionvenues.SaxoBanktur

13 nrouteitsownorderstoothermarketmakerfirm
nrouteitsownorderstoothermarketmakerfirms,venuesexchanges.However, Saxo Marketstransacts the Client’sorderasagentautomaticallyroutedtoanexecutionvenuedeterminedSaxoBanktoachievetheBestExecutionaccording tothisPolicy. 5.1.3.Saxo Markets undertakestotake allstepsnecessary toresolveservice issuesnegotiationwithSaxoBanktotakeintofullaccounttheoperationalissuesinvolvedsuchdecisionSaxoBankasthevenueprovidertoitsaffiliate,Saxo MarketsrecognisesSaxo Bank’s righttodecidetoexecute trades on analternative venuein circumstanceswhere thereis acontinued andseriousdeteriorationthequalityitsservicetoSaxo Markets. 5.2.Aggregation and SplitSaxo Marketsclient’sorderatthediscretionSaxoBankaggregatedwithSaxoBank’sownorders,ordersSaxo Markets’ associatesand/orthe

14 irclients.Furthermore,SaxoBanksplit a cl
irclients.Furthermore,SaxoBanksplit a clientorderaswellasaggregateorderswhereunlikelythattheaggregatingorderstransactionswillworkoveralltothedisadvantageanyclientwhoseordertoaggregated.However,remainspossiblethattheeffectaggregationmayworktothedisadvantageparticularclientrelationtoanyparticularorder. ORDER HANDLING SAXO MARKETS 8 of 4 0 08.2020 5.3.InformationSharingaxo Marketshaveaccessuseprovidecounterpartieswithinformationananonymousandaggregatedbasis,includingnotlimitedto,the Client’sorders(i.e.ordersexecutedfullpart,cancelled,expired),positions,tradeotherdataandanalytics(collectively,AnonymousandAggregatedData).ThisAnonymousandAggregatedDatausedformarketinformation,analyticaltools,riskmanagement strategiesfor marketmaking andliquidity provision

15 andother axo Marketsproducts andservices
andother axo Marketsproducts andservices.ThenatureAnonymousAggregatedDataprovidedtothe Clientmaydifferfromthatprovidedtoothercounterpartiestermsquantity,scope, methodologyotherwiseandmaychangedfromtimetotimewithoutnoticetothe Client 5.4.MarketVolatility5.4.1.Marketvolatilityresulttheprice a FinancialInstrumentmovingsignificantlyfromthetimereceipt a clientordertothetimeorderexecution. 5.4.2.Clientsshouldawarethattherearerisksassociatedwithvolatilemarkets,especiallyattheopenclosethestandardtradingsessionthese risksinclude,arenotlimiteda.Executionat a substantiallydifferentpricefromthequotedbidofferthelastreportedpriceatthetimeorderentry,aswellaspartialexecutionsecutionlargeordersseveraltransactionsdifferentprices;b.Delays in executingorders forfinancial instruments th

16 atSaxo Bankmustsendtoexternal venuesand
atSaxo Bankmustsendtoexternal venuesand manuallyroutedor manuallyexecuterders;Openingpricesthatmaydiffersubstantiallyfromthepreviousday’sclosed.Locked(the bidequals theoffer) andcrossed (the bidis higherthan theoffer)kets,whichpreventtheexecutionclientordersPricevolatilityonefactorthatcan aectorderexecution.Whenthereisa gh volumeof orders in the market,order imbalances k logs canoccur.Thisimpliesthatmoretime neededtoexecute thependingorders.Suchdelays areusually caused by the occurrence ofdifferentfactors:thenumbersizeorderstoprocessed;thespeedwhichcurrentquotations(orlastsaleinformation)arovidedtoSaxoBankotherbrokeragefirms;thesystemcapacityconstraintsapplicabletothegivenexchange,aswellstoSaxoBankandotherfirms. SAXO MARKETS 9 of 4 0 08.2020

17 5.5.OrderlyMarkets5.5.1.Saxo Markets
5.5.OrderlyMarkets5.5.1.Saxo MarketsSaxoBankareobligedtotakenecessarystepstokeepanorderlymarket,operatewithComplianceorderfilters.ComplianceorderfiltersarealsopresentatexchangesotherbrokersthatmightusedSaxoBanktorouteanordertothedesignatedmarket.Thefiltersmightresultorderswithlargeexpectedmarketimpactbeingdelayedtradedusinganalgorithm,potentiallycausingslippagefromtheexpectedarrivalprice.Stopoutor Stop Traded orders are also, at Saxo Bank’s discretion, grouped into largerorders and then traded as an algorithm to prevent cascading market impactor largemarket impactgeneral. NeitherSaxo Markets norSaxoBank canheld liableforpriceslippagecausedactingtokeepanorderlymarketminimizetheimpactmarketsprices. 6.1.Saxo Marketsanobligationtomonitortheeffectiveness

18 itsexecutionarrangements underthisPolicy
itsexecutionarrangements underthisPolicy,whereappropriate,correctdeficiencies.Saxo Markets willcheckthefairnessthepriceproposedtotheclient,gatheringmarketdatausedtheestimationthepricesuchproductand,wherepossible,comparingwithsimilarcomparableproducts. 6.2.Saxo MarketswillreviewthisPolicyannuallyandwhenevermaterialchangeoccursthataffectsSaxo Markets’abilitytoconsistentlyobtainthebestpossibleresultfortheexecutionclientorders.Saxo Markets willthisPolicybasedsuchreviewsconsiderstonecessary.AnypolicywillmadeavailableSaxo Markets’websitewillforceasfrompublication. 6.3.Saxo Markets will summariseand make publicon an annualbasis, for eachclass of financialinstrumentScheduletothisPolicy,reportsthefiveexecutionvenuestermstradingvolumesfortheprecedingyearinformat

19 ionthequalitytheexecutionobtainedSaxoBan
ionthequalitytheexecutionobtainedSaxoBankbehalfSaxo MarketsAnyreportwillmadeavailabletheSaxo Marketswebsite. REVIEWANDMONITORINGTHISPOLICY SAXO MARKETS 10 of 4 0 08.2020 7.1.Saxo Marketschargesforitsservices.Thesevarydependingfactorssuchastheserviceprovidingtotheclient;themannerwhichtheyareused;andthepricingplanthattheclientagreed 7.2.DetailsSaxo Marketschargesareavailableitswebsite.WhereprovidesliquidityfromSaxoBank’s internalflowaggregationbookSaxo Marketswillprovidetheclientwith a twowaydealingprice.normalcircumstances,thedifferencebetweenthebidprice(atwhichSaxo Marketswillingtobuy)theaskprice(atwhichwillingtosell)willconstitutepartof its charges forthe service provided.For assessing whether ithas achieved BestExecution,Saxo Marketswillnottakeitss

20 tandardchargesthatapplyto a client’
tandardchargesthatapplyto a client’stransactions irrespectivethevenueatwhichtheyareexecutedintoaccount.Saxo Markets will,however,takeaccountchargeslevied a thirdpartyincorporatedintoitspricestoreflectcostdifferentialsdealingatdifferentexecutionvenues. CHARGES SAXO MARKETS 11 of 4 0 08.2020 1.TheBestExecutionobligationapplieswhenSaxo Marketsexecutes atransactionbehalf a clientthefollowingFinancialInstrumentsdefinedMiFIDandtheFCARules: ListedInstrumentsa.CashEquitiesb.ExchangeTradedProducts(ETF,ETC,ETN)Bondsd.ListedOptions OTCInstrumentsCFDEquitiesCFD Exchange TradedProducts (ETF,ETC,ETN)CFDIndicesh.CFDFutures(Commodities,FX,Indices,Bonds)CFDOptionsFuturesBondsRollingSpotForexForeignExchangeForwardn.ForeignExchangeSwapso.ForeignExchangeOptions 2.Best E

21 xecutiondoesnotapplythefollowing(nonexha
xecutiondoesnotapplythefollowing(nonexhaustively):a.Spotforeignexchangetransactionsundertakenwiththeintentionconvertingmoneyromonecurrencytoanother – includingtransactionsundertakentofacilitateettlementothertransactions. b.Transactionsarisingfromtheexerciseanoption.Saxo Markets willtreatinstructiontoexercise an option as a specific instruction from the clienttoexercisehis rightstheoptioncontractwillnottakeaccountthestatetheunderlyingmarketatthetime. SCHEDULES FINANCIAL INSTRUMENTS SAXO MARKETS 12 of 4 0 08.2020 1.Scope1.1.ProductsScopePurchasesalecashequitiesandequitylikeproducts,suchasETFs,ETCsETNs. 1.2.ScopeTransactionsarisingfromtheexerciseanoption 2.RelevantExecutionFactorsSaxo Marketstradesagentwithrespecttocashequitytrade

22 swithclients.Saxo Markets viaSaxo Bankac
swithclients.Saxo Markets viaSaxo Bankaccess toseveralSmart OrderRoutersthat checkultipledifferentexecutionvenueswhentryingtoexecutecashequityorder.onlydoesthisallowSaxo Marketstopotentiallyaccessbetterprices,alsogivesaccesstoadditionalliquidity,meaningthattheregreaterlikelihoodobtaininganexecution.Therankingexecutionfactorsforcashequitiesis:1.Price2.Expected impactexecution3.Likelihoodexecutionsettlement4.Costs5.Speed6.Otherfactors 3.Saxo Markets’selectedvenueAllordersCashEquitiesareexecutedvenueviaSaxoBankasanagent. 4.PriceformationClientorderswillroutedsmartorderrouterstotheelectronicorderbookdifferentvenues.Pricesareformedaccordingtorulesthevenue. 5.ListMainExecutionVenues5.1.Saxo MarketsrelytheselectionexecutionvenuesSaxoBank.listexecution venuescurr

23 entlyusedSaxoBankpublishedtheirwebsitean
entlyusedSaxoBankpublishedtheirwebsiteandupdatedasnecessary.Pleasenotethatexceptionalcircumstances,SaxoBankchoosetoexecuteatvenueentitythatnotincludedthepublishedexecutionvenuelist. SCHEDULE2.1:CASHEQUITIESEXCHANGETRADEDPRODUCTS SAXO MARKETS 13 of 4 0 08.2020 5.2.SaxoBank’sexecutionvenuesforCashEquitiesandExchangeTradedproducts(ETF,ETC,ETN)include(thistablesubjecttochangewithoutnotice): CashEquities,ETFs,ETC,ETNs VenueswhichSaxoBankhasaccessviaExecutingBrokers Alpha(CHILitBookInstinetNighthawkVWAPNomuraNXJapan AquisExchangeDeutscheBankSuperXInstinetVWAPXEurope NYSE MKT (American Stock Exchange) ASXCentrePointDeutscheBörse(Xetra)InstinetVWAPXUSOmega ATDAutoEquiductIrishStockExchangeOsloBørs/OsloStockExchange AthensExchangeEuronextAmsterdam

24 ITGPOSITOTCBulletinBoard Australian Secu
ITGPOSITOTCBulletinBoard Australian SecuritiesExchangeEuronextBrusselsJohannesburgStockExchangeOTCMarketsGroup(PinkSheets) BATSDarkEuronextLisbonJP MorganPDQ BIDSEuronextParisJP Morgan JPMXPotamus BMESpanishExchangeFidelityCrossStreamKCGGETMatchedPragueStockExchange BNPBIXGSSigma XKnightLinkPure BofAMLMLXNHongKongExchangeKnightMatchSBIJapannext Borsa Italiana/ MilanStock Exchange ICXBLXLavaFlowECNSingaporeExchange BudapestStockExchangeICXVWAPXLevelATSSIXSwissExchange BXE(BATS)DarkPoolIEXLiquidnetH2OSmartPool BXE(BATS)LitBookInstinetLiquidnetNegotiatedSSGMBlockCross Chi-X AustraliaInstinetBlockMatchLondonStockExchangeTMXSelect Chi-X CanadaInstinetBLXAustraliaLynxTokyoStockExchange Chi-X ChiDeltaInstinetBLXUSMacquarieXENTORACrosspoint Chi-X JapanInstinetCBXHong

25 KongMATCHNowTorontoStockExchange Citadel
KongMATCHNowTorontoStockExchange CitadelConnectInstinetCBXJapanMorganStanleyVentureExchange CitiCrossInstinetCBXUSTrajectoryCrossTurquoise CLSADarkPoolInstinetJapanCrossingNASDAQTurquoiseDark CommerzbankInstinetNighthawkVWAPNASDAQOMXCopenhagenTurquoiseMidPoint Commonwealth Bank of Australia InstinetVWAPXEurope NASDAQOMXHelsinki UBS ConvergExMilleniumInstinetVWAPXUSNASDAQOMXNordic@MidUBSPIN ConvergExVortexIrishStockExchangeNASDAQOMXStockholmWarsawStockExchange CreditSuisseCrossFinderInstinetCBXUSNewYorkStockExchangeWells Fargo WELX LightPoolInstinetJapanCrossingNewYorkStockExchange(ARCSA) Wiener Börse/Vienna Stock Exchange InstinetNighthawkVWAPNighthawkVWAPXetraMidPoint (CHIDarkBookInstinetVWAPXEuropeNomura SAXO MARKETS 14 of 4 0 08.2020

26 1.ProductsScope:Purchasean
1.ProductsScope:PurchaseandsaleExchangeTradedOptionsforspeculativehedgingpurposes. 2.RelevantExecutionFactorsSaxo Marketstradesasprincipalwithrespecttolistedoptionstradeswithclients.Exchangetradedoptionsaretradedcentrallyregulatedvenuethereforetheconcentrationtheliquiditythosevenues.Forlistedoptions,therakingtheapplicableexecutionfactorsis:1.Price2.Expected impactexecution3.Likelihoodexecutionsettlement4.Costs5.Speed6.Otherfactors 3.Saxo Markets’ selectedvenueSaxo MarketsoffersDirectMarketAccess(DMA)toExchangeTradedOptionsviaSaxoBank. 4.PriceFormation:Clientorderswillroutedtotheelectronicorderbooktherelevantexchange. Priceformationwillaccordingtotherulestheexchange 5.ListMainExecutionVenues5.1.Saxo MarketsrelytheselectionexecutionvenuesSax

27 oBank.listexecution venuescurrentlyusedS
oBank.listexecution venuescurrentlyusedSaxoBankpublishedtheirwebsiteandupdatedasnecessary.Pleasenotethatexceptionalcircumstances,SaxoBankchoosetoexecuteatvenueentitythatnotincludedthepublishedexecutionvenuelist. SaxoBank’sexecution venuesforListed Optionsinclude(this tableis subjecttochangewithoutnotice): SCHEDULE2.2:LISTEDOPTIONS SAXO MARKETS 15 of 4 0 08.2020 VenueswhichSaxoBankhasaccess via ExecutingBrokers BATSOptionsMarketComexMIAXOptionsExchangeNYSEAmexOptions & F BovespaEurexMorganStanleyNYSEArcaOptions BorsaItalianaSpA/ItalianDeutscheBörse(Xetra)InstinetVWAPXUSOmega ExchangeEuronextNASDAQOMXBX,Inc.Options PriceReporting AuthorityEuronextAmsterdamITGPOSITOTCBulletinBoard BourseMontrealInc.HongKongExchangesNASDAQOMXPHLX,LLCOsakaExchangeInc.

28 OptionsExchangeICEFuturesEuropeNASDAQOM
OptionsExchangeICEFuturesEuropeNASDAQOMXStockholmOsloBørs/OsloStockExchange C2 Options Exchange, Incorporated ICEFutures U.S. NASDAQOptionsMarket Singapore Exchange Derivatives Trading Ltd. ChicagoboardtradeInternationalSecuritiesKCGGETMatchedPragueStockExchange Exchange,NewYorkMercantileexchangeSpanishOfficialExchangePure ChicagoBoardOptionExchangeISEGemini,LLCNomuraSydneyFuturesExchangeCorp.Ltd. CitadelJP Morgan SAXO MARKETS 16 of 4 0 08.2020 1.ProductsScope:PurchaseandsaleglobalBonds 2.OrderTypesAvailable2.1Saxo Markets’onlinetradingworkswithoneordertype:FillKill(market)order.Wheremarketpricingoutsidetheindicativebid/offerpricetolackliquidityordersroutedtomarketasaggressiveLimitOrdersThiswillprovidesomeprotect

29 ionfromnegativeslippagebutintroducetheri
ionfromnegativeslippagebutintroducetheriskthattheorderwillnotfilledthemarketmovessharply. 2.2Saxo Markets’offlinetrading,forspecificbonds,allowstheclienttoplaceanOTCLimitOrderthiscaseSaxo Markets’executionvenue,SaxoBank,workstheLimitOrdermanuallybesteffortbasis,versusSaxoBank’sliquidityfollowstherulesforofflinetradingasdescribedbelow. 3.RelevantExecutionFactors3.1Saxo Markets tradesprincipaltobondtradeswithclients.exceptionalcircumstances,forinstancewhenworkinglargeordershighlyilliquidbondsSaxxo Markets actasagent. 3.2Therankingexecutionfactorsforbondsis:1.Price2.Expected impactexecution3.Likelihoodexecutionsettlement4.Ordersizetype5.Costs6.Speed7.Otherfactors SCHEDULE2.3:BONDS SAXO MARKETS 17 of 4 0 08.2020 4.Saxo Markets’select

30 edvenue4.1.Orderscanexecutedoverthecount
edvenue4.1.Orderscanexecutedoverthecounter(OTC)againstSaxoBankLiquidityreferredoasofflinetrading,tradedtheSaxo MarketsplatformSTPtoexecution venues via Saxo Bank referred to asonline trading. 4.2.executingclientordershedging,SaxoBanksourceliquidityfrom:a.Itsowntradingbook;b.Otherdealersthemarket;RegulatedTradingvenues. 4.3.SaxoBankOfflineTrading:4.3.1.ExecutiondonebilaterallywithSaxoBankwithordersstillnegotiatedoverthetelephone.Duetothemarketstructure,Bondsarestilllargelytradedbilaterallyusingvoicetrading.SaxoBankuses a Principalmodel,whereclientscantradeprices offeredSaxoBank,requestfromtheclient. 4.4.SaxoBankOnlineTrading:4.4.1.BondstradedviaSaxoBank’sonlinebondofferingarecarefullyselected basedsustainableliquidity,hencesufficientindicativepricesandactivedeal

31 ers.ExecutioncarriedouttheRequestforQuot
ers.ExecutioncarriedouttheRequestforQuote(RFQ)model a MultilateralTradingFacility(MTF)allowingSaxoBanktoaccessmultipleliquidityproviders.TheLiquidityprovidersparticipatingare prioritizedbasedhistoricaldatatoobtain a fairprice,within a giventimeframe. 4.4.2.Liveindicativepricesaredisplayedtotheclientbeforeplacingorder.Thesepricesconstitutethelimit,theclientagreestotheprices a FOKorderplacedthemarketworkingfortooneminute.Theorderroutedtoto100+liquidityproviderstocompressspreadsthrough multidealercompetitionandensurethebestpossibleexecutionfortheclient.Morethan75%theonlineordersarequotedatleast 3counterpartiesbeforebeingexecuted. SAXO MARKETS 18 of 4 0 08.2020 5.Priceformation5.1.Offlinetrading:5.1.1.The marketcharacterisedindicative OTCprices.Fo

32 rbondstraded offlineSaxoBanksplitsallbon
rbondstraded offlineSaxoBanksplitsallbondsintoonethreebasketsbasedtherelevantbond’sliquidity; 5.1.2.Forhighlyliquidbonds,SaxoBankwillofferbid/offerpricecomparabletothatshownattainablefirmmarket(thisincludespublicexchangesto whichSaxoBankhasaccess, aswellasOTCcounterparts). 5.1.3.Forbondswithlowerliquidity,SaxoBankwillsourceminimumthreeseparateindicativepricestogaugethebestpricebasedtheordersize. 5.1.4.Forhighlyilliquidbonds,SaxoBankseekstoderivemidpricebasedallindicativepricinginformationavailabletoit,thenquotesbid/offerspreadtotheclientfactoringpredefinedadditionalspread. 5.2.Onlinetrading5.2.1.The(liveindicativeplatform)pricederivedfrommultipleprices,price sources,pricemodelcalculations,toformrelevantaveragethemarket.Theaimourpricingtoreflecttherealma

33 rketpricesascloseaspossible,despitethein
rketpricesascloseaspossible,despitetheindicativenaturethebondmarkets. 5.2.2.SaxoBankwilltracktheperformanceourliquidityprovidersmonthlycomparingthepriceshavereceivedtorelevantbenchmark/feedpricesordertocontinuouslyevaluateensurethequalityouronlineexecution. SAXO MARKETS 19 of 4 0 08.2020 6.ListMainExecutionVenues6.1.Saxo MarketsreliestheselectionexecutionvenuesSaxoBank. A listexecution venuescurrentlyusedSaxoBankpublishedtheirwebsiteandupdatedasnecessary.Pleasenotethatexceptionalcircumstances,SaxoBankchoosetoexecuteat a venueentitythatnotincludedthepublishedexecutionvenuelist. 6.2.Saxo Bank’sexecutionvenuesforBondsinclude (thistablesubjecttochangewithoutnotice): OnlineVenues Liquidity Providers TradewebMTF - RFQModel(seesomememberliquidityproviders

34 below) ABNAMROCreditSuisseMillenniumEuro
below) ABNAMROCreditSuisseMillenniumEuropeSantander ANZBankingGroupDaiwaCapitalMarketsMitsubishiSocieteGenerale BancaIMIDeutscheBankMorganStanleyStandardCharteredBank BankAmerica/MerrillLynchBankMPSCapitalToronto Dominion Bank BarclaysBankGoldmanSachsNatixisUBS BBVAHSBCBankNomuraUnicredit BNPParibasINGBankOddoWellsFargo CitigroupJeffriesInternationalRabobank CommerzbankJP MorganRoyal Bank ofCanada CreditAgricoleLloydsBankRoyalBankScotland DMARegulatedMarkets EuronextNASDAQOMXCopenhagen Offline - Hedging Liquidity Providers *in addition to all above mentioned liquidity providers ArcticSecuritiesJyskeBankNIBCMarketsTradition DanskeBankMarketAxessPershingVTBCapital DNBBankNedbankSEBBankZurichCantonalbank SAXO MARKETS 20 of 4 0 08.2020

35 1.ProductsScopePurchasesalecontractsf
1.ProductsScopePurchasesalecontractsfordifferencesbasedindividualshares,ETFs,ETCsTNs. 2.RelevantExecutionFactorsSaxo Marketstrades as a principal to CFD equity trades with clients. CFDequity ordersare handledthesamemannerascashequityordersbecauseourvenueSaxoBankwillrouteitshedgetradeagainstCFDequityordersdirectlytothemarketthesamewayaswouldroute a client’scashequitytrade. a result,therankingexecutionfactorsis the same.1.Price2.Expected impactexecution3.Likelihoodexecutionsettlement4.Costs5.Speed6.Otherfactors 3.Saxo Markets’ selectedvenueaxo Markets’venue isSaxo Bank. SaxoBank hedgesthe CFDs thatit enters intowithclientsusingcashequities. 4.PriceformationPricesare formed accordingto rules ofthe venue. SCHEDULE 2.4:CFDEQUITIES & EXCHANGE TRADEDPRODU

36 CTS SAXO MARKETS 21 of 4 0 08.20
CTS SAXO MARKETS 21 of 4 0 08.2020 1.ProductsScopePurchaseandsalecontractsfordifferencesbasedstockindices 2.SpreadFiltersordertoensurethattheclient’sStopOrdersarenotfilledatunreliablepricesduringshorttermedperiodswithabnormallywidebid/askspreadscausedforinstance releasekey economicfigures Saxo Marketshas implementedspreadfilters preventingorderexecutionwhenspreadsexceedcertainlevels.Havingthespreadfiltersplacewillgeneralbenefittheclientcanrareinstancesbe to the disadvantage of theclient. 3.RelevantExecutionFactors3.1.Saxo Markets tradesasprincipaltoCFDIndextradeswithclients.CFDIndexpricesarederivedfromtherelevantunderlyingindexprice,takingintoaccountthecostcarry.SaxoBankprovidesSaxo Markets withcalculationsitsowncostcarrythatfacto

37 rsfutureexpectationsdividendsandinterest
rsfutureexpectationsdividendsandinterestrates,thiscanincludebothinternalandexternalinputs. 3.2.ForCFDindicestherankingapplicableexecutionfactorsis:1.Price2.Expected impactexecution3.Likelihoodexecutionsettlement4.Costs5.Speed6.Otherfactors 4.axo MarketsselectedvenueAllordersCFDIndicesareexecutedagainstSaxoBank’sownliquidity. 5.PriceformationCFDIndexpricesareSaxoBank’sproprietaryprices,whicharederivedfromtherelevantunderlyingMarket. SCHEDULE2.5:CFDINDICES SAXO MARKETS 22 of 4 0 08.2020 1.ProductsScopePurchasesalecontractsfordifferencesbasedfutures,includingCommodities,Index, & ndfutures. 2.SpreadFiltersordertoensurethattheclient’sStopOrdersarenotfilledatunreliablepricesduringshorttermedperiodswithabnormallywidebid/askspreadscausedforin

38 stanceleasekeyeconomicfiguresSaxo Market
stanceleasekeyeconomicfiguresSaxo Marketsimplementedspreadfilterspreventingorderexecution when spreads exceed certainlevels. Having the sprilters inplace willgeneralbenefittheclientcanrareinstancesbe to tsadvantagetheclient. 3.RelevantExecutionFactorsSaxo Markets tradesprincipaltoCFDFuturestradeswithclients.CFDFuturespricesare SaxoBank’sproprietaryprices,whicharederivedfromtherelevantunderlyinginstrumentice,takingintoaccountthecostcarryliquiditywhichcalculatedaxoBankincludesbothinternalexternalinput.ForCFDFutures,therankingecutionfactorsis:1.Price2.Expected impactexecution3.Likelihoodexecutionsettlement4.Costs5.Speed6.Otherfactors 4.Saxo Markets’selectedvenueAllordersCFDCommoditiesareexecutedagainstSaxoBank’sownliquidity. 5.PriceformationThepriceCFD F

39 utures a proprietary pricederivedby Saxo
utures a proprietary pricederivedby SaxoBankwill generallytrackhattherelevantunderlyingexchangetradedmarket. SCHEDULE 2.6:CFDFUTURES SAXO MARKETS 23 of 4 0 08.2020 1.ProductsScope:1.1.PurchaseandsaleCFDsbasedlistedoptions. 2.RelevantExecutionFactors:SaxoBanktradesasprincipaltoCFDOptiontradeswithclients,atCFDpricesthatarederivedfromtheunderlyinglistedoptions. ForCFDOptions the rankingof applicable executionfactors is:1.Price;2.Expectedimpactexecution;3.Likelihoodexecutionsettlement;4.Costs;5.Speed;6.Otherfactors. 4.SaxoMarkets’SelectedVenue:4.1.AllordersCFDOptionsareexecutedagainstSaxoBank’sownliquidity. 5.PriceFormation:5.1.Pricesare formed accordingto rules ofthe venue. SCHEDULE2.7:CFDOPTIONS SAXO MARKETS 24 of 4 0

40 08.2020 1.ProductsScopePurchasesal
08.2020 1.ProductsScopePurchasesaleFuturesforspeculativehedgingpurposes. 2.Scope:2.1.Saxo Marketsdoesnotsupportphysicaldeliverytheunderlyingsecurityexpiryfutures.Clientsshouldthereforetakenotetheexpiryfirstnoticedates(FND)anyfutureswhichtheyhavepositionsensuretheyareclosedbeforetheappropriateday,asdescribedbelow. 2.2.theFNDbeforetheexpirydate,positionsneedtoclosedthebeforetheFND.If theexpirydate isbeforethe FNDpositionsneed toclosed nolaterthantheexpirydate. 2.3.futurespositionsarenotclosedbeforetherelevantdate,Saxo Marketswillclosethepositiontheclient’sbehalfatthefirstavailableopportunityattheprevailingmarketrate.Anyresultingcosts,gainslosseswillpassedtotheclient. 3.RelevantExecutionFactorsSaxo Marketstradesprincipalwithrespecttofuturestradeswithclients.

41 Exchangetraded futuresarenotfungibleanda
Exchangetraded futuresarenotfungibleandaretraded a centrallyregulatedvenuethereforetheliquiditythosevenues.Forfutures,therankingtheapplicableexecutionfactorsis:1.Price2.Expected impactexecution3.Likelihoodexecutionsettlement4.Costs5.Speed6.Otherfactors 4.Saxo Markets’selectedvenueSaxo MarketsusesSaxoBankasexecutingbrokertoaccessunderlyingmarkets.SaxoBankoffersDirectMarketAccess(DMA)totheFuturesExchanges. 5.PriceFormationClientorderswillroutedtotherelevantexchange.Priceformationwillaccordingtotherulestheexchange. SCHEDULE 2.8:FUTURES SAXO MARKETS 25 of 4 0 08.2020 6.ListMainExecutionVenues6.1.Saxo MarketsrelytheselectionexecutionvenuesSaxoBank.listexecution venuescurrentlyusedSaxoBankpublishedtheirwebsiteandupdatedasnecessary.Pleasenotetha

42 texceptionalcircumstances,SaxoBankchoose
texceptionalcircumstances,SaxoBankchoosetoexecuteatvenueentitythatnotincludedthepublishedexecutionvenuelist. 6.2.SaxoBank’sexecutionvenuesforFuturesinclude(thistablesubjecttochangewithoutnotice): OnlineVenuesLiquidityProviders BATSOptionsMarketComexMIAXOptionsExchangeNYSEAmexOptions BovespaEurexMorganStanleyNYSEArcaOptions Borsa Italiana SpA/Italian Exchange EuronextNASDAQOMXBX,Inc.OptionsPriceReportingAuthority BourseMontrealInc.HongKongExchangesNASDAQOMXPHLX,LLCOsakaExchangeInc. OptionsExchangeICEFuturesEuropeNASDAQOMXStockholmOsloBørs/OsloStockExchange C2 Options Exchange, Incorporated ICEFutures U.S.NASDAQOptionsMarket Singapore Exchange Derivatives Trading Ltd. International Securities Exchange, LLC New York Mer

43 cantile exchange SpanishOfficialExch
cantile exchange SpanishOfficialExchange ChicagoBoardOptionExchangeISEGemini,LLCNomuraSydneyFuturesExchangeCorp.Ltd. CitadelMorgan SAXO MARKETS 26 of 4 0 08.2020 1.ProductsScopePurchasesaleRolling Spot Forexcontracts 2.Products notScope:2.1.Spotforeignexchangetransactionsundertakenwiththeintentionconvertingmoneyromonecurrencytoanother – includingtransactionsundertakentofacilitatesettlementothertransactions. 2.2.Transactionsundertakentorollforwardthevaluedate a clientpositionwhichnotresult a changetotheclient’smarketexposure. 3.OrderTypesAvailable3.1.ImmediateCancel(IOC)MarketOrder3.1.1.An Immediate or Cancel (IOC) Market Order is similar to a standard Market Order (described below). It is an instruction to trade immediately on the best a

44 vailable terms. However, Saxo Bank will
vailable terms. However, Saxo Bank will not continue to work the order if it is unable to fill it within an appropriate timeframe. 3.1.2.AlthoughSaxoBankwilltakeallsufficientstepstoobtainthebestterms availableatthetime,illiquidmarketconditionsthebestavailableterms substantiallyworsethantheprevious(oreventhenext)price. AMarketIOCorderforimmediateexecution.SaxoBankwillnotdelayexecutionthehopethatmarketconditionswillimprove. 3.1.3.Saxo Bank monitors the prices available to it at its selected external venues. If Saxo Bank believes it is able to execute a Market IOC order immediately from its own liquidity then it will do so. Otherwise it will route the order to a third party to attempt execution. 3.1.4.Clientsshouldnotethattheycannot cancelIOCordersaftersubmission. SC

45 HEDULE 2.9: ROLLING SPOT FOREX SAXO MARK
HEDULE 2.9: ROLLING SPOT FOREX SAXO MARKETS 27 of 4 0 08.2020 3.2.MarketOrder3.2.1.MarketOrdertraditional‘atbest’instructiontotradeasmuchtheorderaspossiblethebestavailabletermsthemarket.Marketorderwillnormallybefilledimmediately(orfailingthatrelativelyshorttime).SaxoBankwilltakesufficientstepsidentifythebesttermsimmediatelyavailablefortransactionofthatsizeandwilltransactthoseterms.FinancialinstitutionsarerequiredtoexecuteMarketOrdersassoonasreasonablypossiblewithoutregardtopricechanges.Therefore,theorderwillexposedtotheriskexecutionatpricewhichcouldsubstantiallydifferentfromthepricewhentheorderwasentered. 3.2.2.A Market Order will be treated as good for the day. If Saxo Bank believes it is able to execute a Market Order immediate

46 ly from its own liquidity, then it will
ly from its own liquidity, then it will do so. Otherwise it will route the order to a third party to attempt execution. If the order cannot be filled in full immediately, Saxo Bank will continue to work the order until the end of the trading day, which is defined as 5PM EST for most currencies. Select currencies have reduced trading hours. Please see specific times on our webpage. 3.3.ImmediateCancel(IOC)LimitOrder 3.3.1.LimitIOCorderanordertotradeata specified limit price or better. The order will be cancelled, if not filled in full. 3.3.2.placingLimitIOCorder,clientspecifytolerance.Tolerance can bespecified eitheras afixed priceincrement orasa percentageof thecurrentmarketprice.Iftheclientspecifiestolerance,SaxoBankmayfilltheorderatworsepricethantheclientsee

47 nthescreen, providedthepricedifferencedo
nthescreen, providedthepricedifferencedoesnotexceedtheclient’sspecifiedtolerance. 3.3.3.As with a Market IOC order, if Saxo Bank is unable to supply sufficient liquidity from its own book, it may route the order externally. 3.3.4.ClientsshouldnotethattheycannotcancelIOCordersaftersubmission. SAXO MARKETS 28 of 4 0 08.2020 3.4.LimitOrder3.4.1.A LimitOrderanordertotradeat a specifiedpricebetter. Thefollowingorderdurationsare available: a.Day Order (DO): Valid until the close of trading on the day the orderis placed (or on the subsequent business day for orders acceptedduring the weekend).b.Good TillDate (GTD): Valid until the official close of trading on adate of the client’s choice.Good Till Cancelled (GTC): Valid indefinitely unless or until

48 specifically cancelled by the client. Wh
specifically cancelled by the client. Where an order is attached toan open position, it will automatically be cancelled if the position isclosed. ny remaining amount that has not been executed at the specified limit price or better, will be cancelled when the duration has expired. 3.4.2.A Limit Order to sell will be triggered when Saxo Bank’s quoted bid, plus any clientspecific Mark Up, reaches the specified price level. 3.4.3.A Limit Order to buy will be triggered when Saxo Bank’s quoted offer, minus any clientspecific Mark Up, reaches the specified price level. 3.4.4.Saxo Bank will execute a triggered order immediately from its own liquidity, when possible. Otherwise the order will be routed to a third party to attempt execution. At any time when there

49 is not enough liquidity available from S
is not enough liquidity available from Saxo Bank’s own book, or externally, to fill the order in full, the remaining order amount will revert to a ‘resting order’. 3.5.StopOrder3.5.1.A Stop Order usually used to prevent further losses on an existing position, in cases where the market moves against it.A Stop Orderalsousedtoopen a positionwhenthemarketmovesthrough a chosenlevel.A Stop Order may have durations similar to a Limit Order (see above). 3.5.2.A Stop Order to sell will be triggered when Saxo Markets’quoted offer price reaches the specified price level. Oncetriggered,theorderwilltreatedas a Market Order. SAXO MARKETS 29 of 4 0 08.2020 3.5.3.A StopOrdertowilltriggeredwhen Saxo Markets’quoted bid price reaches the specified

50 price level. Oncetriggered,theorderwillt
price level. Oncetriggered,theorderwilltreatedas a MarketOrder 3.5.4.Triggering on the opposite side of the market protects the client fromtheriskthattheirStopOrdertriggeredas a resultspreadswideningwithoutthemarketactuallymoving.Spreads widenaroundthereleaseeconomicstatisticsat times of reducedliquidity, such as during avalue date roll or duringthecloseopeningthemarket. 3.5.5.Clients should note, that this means a Stop Order will typically be filled the current spread away from the client’s stop level. 3.5.6.The trigger level for a Stop Order can be specified to trail the market. hen the market moves in the client’s favour(up for a stop to sell, down for a stop to buy), the trigger level will move accordingly. How much the trigger level moves is dictated

51 bythe step, which is defined when the or
bythe step, which is defined when the order is placed. 3.5.7. a StopOrdertriggeredwillexecutedatthefirstpossibleopportunitythebesttermsavailablethemarket.This meansthattheclientexposedtotherisk a worsefillgappingilliquidmarkets. 3.6.StopLimitOrder3.6.1.A StopLimit Orderrests inthesame wayas aStop Order. However,oncetriggered,ratherthanexecuteatthenextavailablepriceconvertstoa LimitOrderat a preagreedLimitprice.Fromthatpointon,theordertreatedas a LimitOrder 3.6.2.Thistypeordergivestheclientsomeprotectionfrom a fillmuch worse than the stop price a gappingilliquidmarket.However,thatprotectioncomesat a cost.some circumstances theorder may notbe executedat all. 3.6.3.TrailingStopLimitOrdersarenotavailable. 4.Relevant Execution Factors4.1.or arket rders and top rders (wh

52 ich are converted to arket rders),axo Ma
ich are converted to arket rders),axo Marketswill place the highest priority on total consideration (the SAXO MARKETS 30 of 4 0 08.2020 combination of price and costs associated with dealing).See section 3.1 for additional details around Execution Factors. 4.2.For Limit Orders, Saxo Marketswill place the highest priority on execution at the client’s specified price at the first possible opportunity. This means that Saxo Markets will prioritise speed and certainty of execution.5.Saxo Banks selected venue5.1.For Rolling Spot Forex, Saxo Bank trades as principal and reserves the right to aggregate risks and undertake consolidated hedging trades in the underlying market through its internal flow aggregation book. Where the client has given a speci

53 fic instruction not to do so, Saxo Bank
fic instruction not to do so, Saxo Bank does not. This is described in section . ‘Transactions Where Best Execution Has Limited Scope’.5.2.Saxo Bank will normally provide liquidity from its internal flow aggregation book. Saxo Bank believes this provides the best outcome for clients because:5.2.1.Saxo Bank’s internal flow aggregation model allows it to execute larger trade sizes in the underlying market at lower costs associated with dealing, that would not be available for the smaller trade sizes usually undertaken by its clients.5.2.2.The Rolling Spot Forexmarket is characterized by rapid price movements relative to the costs of dealing. Providing liquidity from its own book allows it to avoid the delays that could arise in routing orders to the und

54 erlying market. Price Formation6.1.Sax
erlying market. Price Formation6.1.Saxo Bank constantly monitors the prices available to it in the wider market. Based on the observed liquidity and price formation in the market, Saxo Bank sets its own price at which it is willing to buy and sell from its flow aggregation book. To this price, its charges are added.6.2.Saxo Bank’s capacity to provide liquidity in any given currency pair is subject to its internal exposure limits. If a particular order would cause it to breach those limits, Saxo Bank may suspend dealing on its price until it is able to reduce its exposure.Reload Period7.1.Saxo Bank monitors the internal and/or external liquidity available in a given currency pair and handles orders that have the potential to have sizeable market impact with pa

55 rticular care and attention. The reload
rticular care and attention. The reload period accumulates the notional amount traded for a period of time after the last trade is executed in a SAXO MARKETS 31 of 4 0 08.2020 given currency pair. During the reload period, Saxo Bank reduces the liquidity available in a given currency pair by the accumulated notional amount traded. This typically results in wider spreads as the price for a next order amount will be based not only on the size of that order alone, but also on the accumulated notional amount previously executed. If Saxo Bank believes it is able to execute an order immediately from its own liquidity it will do so, otherwise the order may be routed to a third party. After a period of time with no trading activity, the full liquidity available

56 in a given currency pair will be reloade
in a given currency pair will be reloaded. The reload period is client specific, meaning that the trading activity ofone client, does not affect the liquidity available in a given currency pair to another client. Saxo Banks Charges8.1.Saxo Bank’s charges may include the following, some of which may be included in the netprice at which the client trades:8.1.1.Price Mark Upaxo Bank’s final transaction price may be inclusive of Mark Up that may impact the execution of any order linked to or triggered at a specified price level. This Mark Up will not be included for best execution comparison purposes. 8.1.2.SpreadThe difference between the bid (sell) price and the offer (buy) price. Spread is dependent on many different factors, including but not limited to,

57 the underlying liquidity and volatility
the underlying liquidity and volatility, time of day and notional trade size. 8.1.3.Commission.The fee charged for the service of carrying out the transaction, subject to a minimum fee on small notional trade sizes.8.1.4.Financing Adjustments. Where a client holds a position in a Rolling Spot Forexcontract open overnight, Saxo Bank will perform a tomnext rollover to reflectthe financing implications of the position. This is based on the interest rates of the currencies in question. Generally, if the client is long the currency with the lower interest rate, this adjustment will be a cost to the client. If the client is long the currency with the higher interest rate, it may be in the clients favour. There is a charge element in the interest rates Saxo Bank uses to c

58 alculate these financing adjustments. F
alculate these financing adjustments. Fixing Orders9.1.From time to time Saxo Bank may execute a transaction at a rate calculated by a thirdparty based on trading during a specified time of day (commonly referred to as the “Fixing Window”) or at a price determined at a specified time (commonly referred to as a “Reference Time”). Risk management related to such transactions and other transactions conducted in the ordinary course of businessmay lead Saxo Bank to execute hedging transactions before, during or after the Fixing Window or Reference Time. Saxo Bank SAXO MARKETS 32 of 4 0 08.2020 seeks to conduct such hedging activities consistent with all applicable legal and regulatory requirements. Those hedging activities, as well as unr

59 elated transactions and other ordinary c
elated transactions and other ordinary course of business activities executed by Saxo Bank prior to and during the Fixing Window or Reference Time, or at other times, may have an impact in some cases on the benchmark fixing or related markets. Direct Markets Access10.1.Clients may ask Saxo Bank to provide them with direct access to the market. Saxo Bankwill treat this as a Specific Instruction from the client and will accordingly consider whether it is able to do this and on what terms. 10.2.Where Saxo Bank provides clients with direct market access, Saxo Bank will select one or more execution venues that it believes will provide the best outcomes for that client’s transactions. This may be a different selection of venues than it otherwise uses for xecution of

60 similar transactions or for its own hed
similar transactions or for its own hedging purposes. This may result in a different outcome for the client’s transactions. 11.MarketMakingandRiskManagement11.1.Marketmakingriskmanagementactivities, as well as the availability ofliquidity,impactthepricescommunicatedtotheclientfor a transaction. Theseactivitiesalsotriggerpreventtriggeringrestingorders,barrieroptions,vanillaoptionexercisesimilarterms.SaxoBankretainsdiscretionastohowtosatisfycompetinginterests,withrespecttoorderexecution,fillquantity,aggregation,prioritypricing. 12.LastLook12.1.SaxoBankprovidestwotypesliquidity;orderdrivenliquidityforRollingSpotForex andForwards, quotedrivenliquidityforOptions. 12.2.FororderdrivenliquiditywhereSaxoBankcanroutetheorderexternally, a formlastlookappliedotherliquidit

61 yprovidersthatresulttheorderbeingfilledc
yprovidersthatresulttheorderbeingfilledcompletelypartially,notfillatall. 12.3.Thereceipt a traderequestaswellasinformationassociatedwith a traderequestdoesnotinfluencepricinghedgingactivityundertakenSaxoBankpriortotheacceptancethetraderequest. a traderequestrejected,whetheras a resultLastLookotherwise,informationassociatedwiththetraderequestusedtoinfluencepricinghedgingactivitysubsequently undertakenSaxoBank. SAXO MARKETS 33 of 4 0 08.2020 1.ProductsScope1.1.Purchase and sale of foreign exchange forward contracts 2.Products nScope2.1.Foreign exchange transactions undertaken with the intention of converting money from one currency to anotherat a predetermined date in the future including transactions undertaken to facilitate settlement of

62 other transactions. 3.OrderTypesAvail
other transactions. 3.OrderTypesAvailable3.1.ImmediateCancel(IOC)MarketOrderSee Foreign Exchange Spot for detail 3.2.ImmediateCancel(IOC)LimitOrderSee Foreign Exchange Spot for detail 4.RelevantExecutionFactors4.1.Saxo Markets will place the highest priority on total consideration being the combination of price and costs associated with dealing.5.Saxo Markets’selectedvenues5.1.Foreign exchangeforwardoutright prices arebasedthe spotpriceforthe relevantcurrencypairswaprate that is calculated from the interest rate differential. Saxo Marketsexecutesanorderforclientrelationtooreignexchangeforwardoutrightsthespotcomponentwillexecutedthesamewaythataxo Markets wouldexecutespotorderforthatclient. 5.2.Fortheforwardswapelement,axo Marketsprovidesliquidityfromits

63 internalflowaggregationbook. This allows
internalflowaggregationbook. This allowsaxo Marketstoaggregate risks andundertake consolidatedhedgingtradestheunderlyingmarketat lower costs, than would be available for the smaller trade sizes usually undertaken by its clients. Saxo Marketsis able to pass on this benefit toits clients SCHEDULE2.10:FOREIGNEXCHANGEFORWARD OUTRIGHT SAXO MARKETS 34 of 4 0 08.2020 6.PriceFormation6.1.Thespotcomponent a foreign exchangeforwardoutright pricedin thesamewaythat Saxo Marketswouldprice a Rolling Spot Forexcontractforthatclient. 6.2.Theforwardswapcomponentthepricecalculatedfromthespotprice(asabove)thedifferentialbetweentheinterestratesforthetwocurrenciesfortherelevantforwardvaluedate. 6.3.Saxo Markets’interest rates are implied from forward swap rates available

64 to axo Marketsfrom its hedging counterp
to axo Marketsfrom its hedging counterparties. 7.Saxo Markets’ Charges7.1.See Rolling Spot Forex for details of charges that may apply to foreign exchange trades. Saxo Markets adds a spread to the swap component. The addition varies depending upon the currencies concerned, and the time to maturity. Saxo Markets will disclose the total spread for each transaction before the client trades. 8.MarketMakingandRiskManagement8.1.See Rolling Spot Forexfor details. 9.LastLook9.1.See Rolling Spot Forexfor details. SAXO MARKETS 35 of 4 0 08.2020 1.ProductsScope1.1.Purchaseandsaleforeignexchangeswapcontracts. 2.ProductsnotScope2.1.Foreignexchangetransactionsundertakenwiththeintentionconvertingmoneyfromonecurrencytoanotherwith delivery on one da

65 te, together with an exchange in the opp
te, together with an exchange in the opposite direction at a later dateincludingtransactionsundertaken tofacilitatesettlementothertransactions. 3.OrderTypesAvailable3.1.FillKill(FOK)MarketOrder3.1.1.FillorKill(FOK)MarketOrderaninstructiontradeimmediatelyonthebestavailableterms.However,Saxo Markets willnotcontinueworktheorderunablefillfullimmediately. 3.1.2Althoughaxo Marketswilltakeallsufficientstepstoobtainthebestterms availableatthetime,illiquidmarketconditionsthebestavailableterms maysubstantiallyworsethantheprevious(oreventhenext)price.MarketFOKorderforimmediateexecution.axo Markets willnotdelayexecutionthehopethatmarketconditionswillimprove. 3.1.3Clients shouldnotethat theycannotcancelFOK ordersaftersubmission. 3.2.FillKill(FOK)LimitOrder3.2.1.LimitFOKo

66 rderanordertotradeata defined price, if
rderanordertotradeata defined price, if it is availablesubjecttodefinedtolerance(seebelow). 3.2.2.Whenaxo MarketsreceivesLimitFOKorder,willtreatsimilarwayMarketFOKorder(seeabove)exceptthatwillonlyfilltheordertheclient’sspecifiedlimitprice,orbetter.thisnotimmediatelypossiblethentheorderwillbecancelled. When placing a Limit FOK order, a client may specify a tolerance. The tolerance can be specified either as a fixed price increment or as a percentage of the current market price. If the client specifies a tolerance, axo Marketsmayfill the order at a worse price than the client had seen on the screen, provided the price difference does not exceed the client’s specified tolerance.better SCHEDULE2.11:FOREIGNEXCHANGESWAPS SAXO MARKETS 36 of 4 0 08.202

67 0 priceavailable, Saxo Markets willgi
0 priceavailable, Saxo Markets willgivetheclientthefullbenefittheavailableimprovementfillingtheclientorderatthebetterprice. 3.2.3.Clients should note that they cannot cancel FOK orders after submission. 4.RelevantExecutionFactors:4.1.axo Marketswillplacethehighestprioritytotalconsideration – beingthecombinationpricecostsassociatedwithdealing. 5.axo Markets’selectedvenues:5.1.Foreignexchangeswappricesarebasedthespotpricefortherelevantcurrencyair a swapprice. 5.2.Fortheswapelement, Saxo Marketsprovidesliquidityfromitsinternalflowaggregationbook.Thisallows Saxo Marketstoaggregaterisksundertake consolidatedhedgingtradestheunderlyingmarketlowercosts, than would beavailableforthesmallertradesizesusuallyundertakenitsclients.axo Marketsabletopassthisbenefittoit

68 sclients. 6.PriceFormation:6.1.Thespotco
sclients. 6.PriceFormation:6.1.Thespotcomponent a foreign exchangeforwardcontractpricedin thesameaythat Saxo wouldprice a foreignexchangespotcontractforthatclient.The spot component will be the same value for both legs of a swap transaction. 6.2.Theswapcomponentthepricecalculatedfromthespotprice(asabove)thedifferentialbetweentheinterestratesforthetwocurrenciesfortherelevantvaluedates. 7.axo Markets’ Charges:7.1.SeeRolling Spot Forexfordetailschargesthatmayapplytoforeignexchangerades.7.2.axo Marketsadds a spread to the swap component. The addition varies depending upon the currencies concerned, and the time to maturity. axo Markets will disclose the total spread for each transaction before the client trades. 8.MarketMakingandRiskManagement:8.1.SeeRolling Spot Fo

69 rexfordetails. SAXO MARKETS 37 of
rexfordetails. SAXO MARKETS 37 of 4 0 08.2020 9.LastLook:9.1.SeeRolling Spot Forexfordetails. SAXO MARKETS 38 of 4 0 08.2020 1.ProductsScope:ForeignExchangeVanilla,BarrierBinaryTouchOptions 2.Products notScopeAllForeignExchangeOptionsarescope. 3.OrderTypesAvailable3.1.DealingQuotesa.Saxo Marketswillprovidepricesforforeignexchangeoptionstoclientsrequest.Thesepriceswillcalculatedtoitsobligationtoprovidetheclientwiththebestpossibleoutcomethe client’stransactiontermstotalconsideration.b.clientwishestotrade,the clientelecttoatthepriceaxo Marketsquoted.Acceptancethetradesubjecttofiltersbasedtimeelapsedand/orpricemovementstheunderlyingmarket. 4.RelevantExecutionFactors4.1.Saxo Markets willplacethehighestprioritytotalconsider

70 ationbeingthecombinationpricecostsassoci
ationbeingthecombinationpricecostsassociatedwithdealing.axo Markets willalsoprioritisespeedandcertaintyexecutionandtheabilitytotraderetailsizes. 4.2.Theunderlyingmarketforforeignexchange currencyoptionsthe‘interbankmarket’.Transactionsundertakenthismarketarenormallywholesalesize.notnormallypracticaltoundertakeindividualsmallertransactions. 5.Saxo Markets’SelectedVenue(s)5.1.Foreign exchange optionpricesare basedon anumberof factors,the mostsignificantof whichare thespotpricetheunderlyingthe‘impliedvolatility’therelevantcurrency pair. 5.2.Fortheimpliedvolatilityaxo Marketstrades as principal through liquidity providedfromitsinternalflowaggregationbook. This allowstoaggregate risks undertake consolidatedhedgingtradestheunderlyingmarket

71 at lower costs associated with dealing,
at lower costs associated with dealing, than would be available for the smaller trade sizesaxo Marketsis ableto pass onthis benefit to its clients. SCHEDULE2.12:FOREIGNEXCHANGEOPTIONS SAXO MARKETS 39 of 4 0 08.2020 6.PriceFormation6.1.axo MarketsusestheBlackScholespricingmodeltopriceoptionsfromitsownliquidity.Thismodelgenerates a singlemidmarketpricebasedspotprices,interestrates‘impliedvolatilities’forthecurrenciesconcerned. 6.2.Saxo Marketsconstantlyreviews itspricesagainsttheinterbankmarkettoensurethatitsmidprices arewithinthebestbidofferpricesin the market 6.3.Saxo Markets’ premium for any given option is derived from three factors which it internally treats as separate markets. axo Markets’ net spread for an optiontrade is derived

72 from the spread it quotes on each compon
from the spread it quotes on each component. The net spread on any particular option transaction will be disclosed before the client trades. Spreads will normally be wider for longer dated options than for shorter dated ones; and wider for closer to the money options than for deeper in or out of the money ones. 7.Saxo Markets’Charges7.1.Saxo Markets’ chargesincludethefollowing,somewhichmayincludedthepriceatwhichtheclienttrades:7.1.1SpreadThe difference between the bid (sell) price and the offer (buy) price. Spread is dependent on many different factors, including but not limited to, the underlying liquidity and volatility, time of day and notional trade size.7.1.2CommissionThe fee charged for the service of carrying out the transaction, subject to a minimu

73 m fee on small notional trade sizes. 8.M
m fee on small notional trade sizes. 8.MarketMakingandRiskManagement8.1.See Rolling Spot Forexfor details. 9.LastLook9.1.axo Markets provides two types of liquidity; order driven liquidity for Rolling Spot Forexand FX Forward, and quote driven liquidity for FX Options. 9.2.Quote driven liquidity gives Saxo Marketsthe ability to see the order and choose to fill or reject the order, before execution. Saxo Marketsemploys a symmetric price check to determine if traderequests are made at prices that are within Saxo Markets’ price tolerance for execution. This control will be applied immediately upon receipt of a trade request. In each case, the current price is compared to the trade request price. If the current pricehas not moved in either SAXO MARKETS 40 of

74 4 0 08.2020 direction from the
4 0 08.2020 direction from the trade request price by more than a defined tolerance, and other pretrade controls are passed, Saxo Marketswill accept the trade request. If the current price differs from the trade request price by more than a defined tolerance, Saxo Markets will reject the trade request. The primary purpose of last look is to protect against trading on prices that do not reflect the current market, and against certain trading behavior10.ListMainExecutionVenues10.1.Saxo Markets rely on the selection of execution venues by Saxo Bank. A list of execution venues currently used by Saxo Bank is published on their website and is updated as necessary. Please note that in exceptional circumstances, Saxo Bank may choose to execute at a venue or entity

75 that is not. SAXO CAPITAL MARKETS UK
that is not. SAXO CAPITAL MARKETS UK LTD ORDER EXECUTION POLICY SAXO CAPITAL MARKETS UK LTD 1.INTRODUCTION If you proceed to place an order with us, we will take that as your consent to SCML executing that order in accordance with this Policy. Execution Factors Execution Criteria d. Venue Characteristics – particular features of the liquidity sources available Execution Venues venues currently used by Saxo Bank is published on their website, and is updated Application of the Best Execution Obligation

76 ere may be occasions when SCML changes
ere may be occasions when SCML changes the priorities given to the execution Speci�c Event of Client Default or other liquidation event Funds Execution of Client Orders Aggregation and Split Information Sharing methodology or otherwise and may be changed from time to time without notice to you. Market Volatility e. iii. Orderly Markets

77
102018 102018 The Best Execution obligation applies when SCML executes a transaction on behalf and the FCA Rules: Listed Instruments OTC Instruments Best Execution does not apply to the following (non-exhaustively): 102018 Scope Products in Scope Not in Scope Relevant Execution Factors SCML’s selected venue Price formation List of Main Execution Venues 102018 Instinet Nighthawk VWAPNomura NX JapanDeutsche Bank SuperXInstinet VWAPX EuropeNYSE MKT Deutsche Börse (Xetra)Instinet VWAPX USAustralian Securities ExchangeEuronext BrusselsJoha

78 nnesburg Stock ExchangeOTC Markets Group
nnesburg Stock ExchangeOTC Markets Group (Pink Sheets)Budapest Stock ExchangeICX VWAPXInstinet CBX Hong KongMATCH NowInstinet Nighthawk VWAPNASDAQ OMX CopenhagenTurquoise MidPointInstinet VWAPX EuropeNASDAQ OMX HelsinkiNASDAQ OMX Nordic@MidUBS PINNASDAQ OMX StockholmWarsaw Stock ExchangeCredit Suisse CrossFinderInstinet CBX USNew York Stock ExchangeWells Fargo WELXInstinet Nighthawk VWAPNighthawk VWAPInstinet VWAPX EuropeNomura 102018 Products in Scope: Relevant Execution Factors SCML’s selected venue Price Formation: List of Main Execution Venues 102018 MIAX Options ExchangeNYSE Amex OptionsBorsa Italiana SpA/ItalianDeutsche Börse (Xetra)Instinet VWAPX USNASDAQ OMX BX, Inc.Options P

79 rice ReportingNASDAQ OMX PHLX, LLCOsaka
rice ReportingNASDAQ OMX PHLX, LLCOsaka Exchange Inc.BOX Options Exchange LLCICE Futures EuropeNASDAQ OMX StockholmOslo Børs/Oslo Stock ExchangeInternational SecuritiesKCG GETMatchedNew York Mercantile exchangeSpanish O�cial ExchangePureChicago Board Option ExchangeISE Gemini, LLC 102018 Products in Scope: Order Types Available 2.1 Relevant Execution Factors 102018 SCML’s selected venue 102018 Price formation 102018 List of Main Execution Venues SCM

80 L relies on the selection of execution v
L relies on the selection of execution venues by Saxo Bank. A list of execution Bank of America/Merrill LynchDZ Bank 102018 Products in Scope Relevant Execution Factors SCML’s selected venue Price formation 102018 Products in Scope Spread Filters Relevant Execution Factors SCML’s selected venue Price formation 102018 Products in Scope Purchase and sale of contracts for di�erences based on futures, including Commodities, Spread Filters Relevant Execution Factors SCML’s selected venue Price formation 102018 Products in Scope: Relevant Execution Factors:

81 Saxo Bank’s Selected Venue: Pri
Saxo Bank’s Selected Venue: Price Formation: 102018 Products in Scope Not in Scope: Relevant Execution Factors SCML’s selected venue Price Formation 102018 List of Main Execution Venues MIAX Options ExchangeNYSE Amex OptionsNASDAQ OMX BX, Inc.Options Price Reporting AuthorityNASDAQ OMX PHLX, LLCOsaka Exchange Inc.BOX Options Exchange LLCICE Futures EuropeNASDAQ OMX StockholmOslo Børs/Oslo Stock ExchangeChicago Board Option ExchangeISE Gemini, LLC 102018 Products in Scope Not in Scope: Order Types Available 102018

82
102018 102018 Day Order (DO): Good Till Date (GTD): Good Till Cancelled (GTC): 102018 102018 Direct Market Access Relevant Execution Factors 102018 Market Making and Risk M

83 anagement
anagement Last Look 102018 SCML’s selected venue 102018 Price formation Reload Period: currency pair by the accumulated notional amount traded. This typically 102018 SCML’s Charges Spread Commission Financing Adjustments Fixing Orders 102018 List of Main Execution Venues SCML relies on the selection of exec

84 ution venues by Saxo Bank. A list of exe
ution venues by Saxo Bank. A list of execution Bank of Tokyo Mitsubishi UFJCredit SuisseHC Tech (Henning Carey)Royal Bank of Scotland 102018 Products in Scope Not in Scope Order Types Available Relevant Execution Factors Market Making and Risk Management Last Look SCML’s selected venues 102018 Price Formation 102018 SCML’s Charges List of Main Execution Venues Saxo Bank’s Prime Brokers Products in Scope: Products not in Scope Order Types Available 102018

85 Relevant Execution Factors:
Relevant Execution Factors: 102018 Saxo Bank’s selected venues: Price Formation: 102018 Products in Scope: Not in Scope Order Types Available Saxo Bank’s Charges: Market Making and Risk Management: Last Look: 102018 Relevant Execution Factors Market Making and Risk Management Last Look SCML’s Selected Venue(s) Price Formation 102018 SCML’s Charges List of Main Execution Venues 102018 Saxo Bank’s Prime Broker