Best Execution Policy

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Best Execution

Financial Instruments To Which Policy Applies
Objectives

Elements Of Best Execution

Execution Of Client Orders

Effects On Order Execution

Execution Venues Currently Used

Regular Review Of Execution Quality & Execution Venues

Business Terms

Best Execution

This refers to Anchoria Investment and Securities Limited’s responsibility in executing orders on behalf of customers to achieve the best execution feasible for their customers’ orders. Some of the elements that our brokers use while evaluating our customers’ orders are as follows: 

The opportunity of obtaining a better price than what is now quoted, 

The likelihood and speed of execution. 

Financial Instruments To Which Policy Applies

This policy applies to financial instruments and products as specified by the Rules, such as stocks, bonds, ETFs, options, and mutual funds. Some of these goods may be traded OTC to some extent and hence are not covered by this policy. 

Objectives

This policy provides an overview of how our company executes orders in the Nigerian stock market on behalf of clients, the factors that can influence execution timing, and how market volatility affects order handling when buying or selling a financial instrument. 

When our firm offers a quote to a client or negotiates the terms of an Over the Counter (“OTC”) transaction with our firm as the counterparty, we are not acting on the client’s behalf. In some circumstances, our firm does not owe a duty of best execution under the Rules, and hence our policy does not apply. This policy imposes no duties on our company that do not already exist under the Rules. 

This policy governs Anchoria Investment and Securities Limited’s execution of orders on behalf of retail and professional clients as defined in the Rules. 

When a client order is accepted and there is no specific client instruction on the mode of execution, our business shall execute the order in accordance with our policy. 

When executing orders, our firm will take all reasonable steps to obtain the best possible result for the client under the circumstances, considering price, costs, speed, likelihood of execution and settlement, size, nature, or any other consideration relevant to the order’s execution (“Best Execution”). 

When determining the best executing factors, our firm considers the following: the characteristics of the client order, the characteristics of the financial instruments subject to that order (in the case of OTC financial instruments), and the characteristics of the execution venues to which that order can be directed. 

We execute orders on behalf of retail clients. Best Execution is decided based on the whole consideration provided by the client, unless the order’s execution objective mandates otherwise. When carrying out When a client gives us a specific instruction, we shall, to the greatest extent possible, implement the orders in line with the precise instruction. A specific client instruction may preclude our firm from completing the actions outlined in this policy to achieve the best possible outcome for the execution orders. Trading laws for individual marketplaces may prevent us from following the directions of a specific customer. If a client instruction is incomplete, our business will determine any non-specified execution components in accordance with this policy.

Elements Of Best Execution

We constantly review the routing determination technique, which is primarily based on four criteria. As a result, our firm considers several factors while determining the best manner to fulfil an order for a customer. 

Speed and Likelihood of the Execution

Due to the levels of volatility influencing both price and volume, our firm strives to execute client orders with the quickest possible execution, albeit delays may occur. 

Price Improvement and Overall Consideration of Costs

Size Improvement

Overall Execution Quality

Execution Of Clients Order

Anchoria Investment and Securities Limited routes and executes customer orders using automated technologies. When we get a client order, we route it to the execution venue that our firm believes provides the Best Execution in general, or we keep it in house for goods that we trade against our own proprietary desk (e.g., some OTC products). Orders may be executed outside of regulated marketplaces and multilateral trading facilities by our firm. Our firm sends orders to the exchange for instruments admitted to trading and formal listing on a regulated market or stock exchange (i.e., Bonds, Stocks, Options, and ETFs). 

For NASD Platform OTC items, our firm will trade (as principal) against its own private desk. Non-listed unit prices in Mutual Funds (e.g., unit trusts or open-ended investment firms) are determined at a future “valuation point,” and hence the actual price of such units is unknown in advance. 

Our firm will try to execute orders for such units, whether subscriptions or redemptions, at the price that is closest to the amount in the client’s order and in accordance with the fund manager’s rounding criteria. At our firm’s discretion, the client’s orders may be aggregated with orders from any of our firm’s associates and/or other clients. Furthermore, before executing the client’s orders, we may split or aggregate them. Orders will be aggregated or split only where our firm thinks that the aggregation or split will not be damaging to any customer. Aggregation and split may result in the client receiving a lower price than if the client’s orders had been performed separately or together, as appropriate. An Introducing Broker’s aggregated orders are allotted to clients using a specified allocation key. Any partially filled orders are settled pro rata at an average price. 

Effects On Order Execution

Clients should be aware of the following risks associated with volatile markets, particularly at or near the start or end of the typical trading day. Execution at a price that is significantly different from the quoted bid or offer or the most recently reported selling price at the time of order entry, as well as partial executions or execution of big orders in numerous transactions at different values. 

Opening pricing may fluctuate significantly from the previous day’s close. Markets that are locked (the bid matches the offer) or crossed (the bid exceeds the offer) prevent customer trade from being executed. 

Execution Venues Currently Used

Anchoria Investment and Securities Limited is an NSE and NASD member firm. In the process of receiving and relaying orders or directly executing listed financial instruments that are not listed on the NSE, we use a variety of external financial institutions and brokers. 

Types Of Orders

  • Market Order
  • Limit Order
  • Stop Order

Regular Review Of Execution Quality & Execution Venues

This policy will be reviewed annually and whenever there is a major change that impacts our capacity to acquire the best possible result for the execution of client requests. 

Our firm checks the overall quality of its order executions and order routing methods on a regular basis, including its order routing providers and available exchanges. We will update this policy based on such reviews if it deems it essential. Any new policy that will be published on our website will be in effect as of the date of publication. 

Business Terms

The policy is subject to our General Business Rules and additional business terms that govern the client relationship from time to time.