Share Prices & Company Research

Order Execution Policy

One of our long-standing aims is to be friendly and helpful at all times and to do the best we can for our clients. This extends to ensuring we transact our clients’ orders quickly, efficiently and with their best interests firmly to the fore.
The purpose of this page is to provide you with information about our Order Execution Policy and to seek your consent for this Policy.

Our Order Execution Policy outlines how we take all sufficient steps to ensure we obtain the best possible outcome when carrying out a transaction on your behalf – this is known as 'best execution'. Clients will be deemed to have accepted the arrangements put in place under this Policy when they next place an order for execution or where they wish to be provided with managed portfolio services.

 

Client Classification

Clients of Redmayne Bentley will be classified either as 'Retail' or 'Professional'. Regardless of the classification, we treat all clients as 'Retail' for the purposes of ensuring we achieve best execution, or ensuring we take all sufficient steps to obtain the best possible result when executing trades.


Specific Client Instructions

If you provide us with a specific instruction, or a specific instruction on certain elements of the order, we will execute the order, or the element of the order in accordance with those instructions. Our obligation to you under this Policy will then cease and it may prevent us from taking the steps designed by the Policy to ensure the best possible outcome when executing your order.


Execution Factors

In order to take all sufficient steps to achieve the best possible outcome when executing your order, we consider a number of factors:
  • The characteristics of the client (as either Retail or Professional as detailed above).
  • The characteristics of the client order.
  • The characteristics of the financial instruments that are the subject of the order.
  • Where such orders can be carried out i.e. the 'execution venues'.
In assessing the most appropriate route to carry out your order our primary focus is on the “total consideration”. This is comprised of the price of the financial instruments offered by the execution venue and the costs relating to execution, including:
  • All expenses directly incurred by executing the order.
  • Execution fees.
  • Clearing and Settlement fees.
  • Any fees paid to third parties as part of the execution.
This will apply to the majority of client orders as they will be standard in terms of instrument, settlement period, size and nature. In some instances, other factors may be of increased importance for an order if they are instrumental in providing the best possible result for that order or in terms of total consideration and will be considered for their impact on the achievement of best execution, including:
  • Speed.
  • Likelihood of execution and settlement.
  • Size and nature of the order.
  • Other relevant factors.


How Orders are Executed and Execution Venues

When executing orders on a regulated market or Multilateral Trading Facility (MTF), we will consider the execution venue based on the factors listed above. This includes the regulated market or MTF itself or a member of the regulated market or MTF.
 
There are a variety of different execution venues available for the different types of financial instruments. One of our commitments under this Policy is to ensure that we are able to execute your order at the most appropriate venue available for that financial instrument type. In addition to the above execution factors, the following may also influence our selection of execution venue:
  • UK & International Equities
We utilise an automated polling system to request quotes from available execution venues (Retail Service Providers (RSPs)) and execute orders in accordance with the best quote provided for the size and settlement date requested. Where we are unable to fulfil an order utilising the automated system our qualified, experienced dealing team will seek to execute the order by contacting a variety of market counterparties (including other regulated firms or MTFs). Occasionally we may execute orders ‘Over the Counter’ (OTC) or Redmayne Bentley may be used as the execution venue.
  • Debt Securities
We utilise an automated polling system to request quotes from available execution venues (Retail Service Providers (RSPs) and Gilt-Edged Market Makers (GEMMs)) and execute orders in accordance with the best quote provided for the size and settlement date requested. Where we are unable to fulfil an order utilising the automated system our qualified, experienced dealing team will seek to execute the order by contacting a variety of market counterparties (including other regulated firms or MTFs). Occasionally we may execute orders ‘Over the Counter’ (OTC) or Redmayne Bentley may be used as the execution venue.
  • Unit Trusts/Open Ended Investment Companies
Orders are executed with individual fund managers via an institutional fund platform. Negotiated terms with the manager/platform often lead to a more favourable outcome than if a client were to trade directly with the fund manager.

At the end of April each year, Redmayne Bentley publish the top five execution venues used in the previous year for each type of financial instrument on the basis of volumes traded.

 

Limit Orders

A limit order is where you provide an instruction to place an order at a specified price limit or better, and/or for a specified size. In these instances it may not always be possible to execute that order under the prevailing market conditions. Redmayne Bentley is required to make your order public i.e. show your order to the market unless you agree that we need not do so. It is our policy to exercise our discretion as to whether of or not we make client orders public. We will proceed on this basis unless you specifically instruct us otherwise.


Orders Executed outside of a Regulated Market

There may be occasions when achieving the best possible result in carrying out a transaction for a client requires execution of the order to take place outside of a Regulated Market. By accepting this Policy you are consenting to Redmayne Bentley acting with discretion in such circumstances.
 

Contract Notes

For each executed order we will issue a contract note detailing all relevant characteristics of the trade, including the trading venue used and whether the orders were 'at limit' or 'at market' (i.e. 'best'). The contract notes will normally be despatched to the client on the day of the trade, by post or online via our Client Web Access (CWA) service.


Monitoring and Review

At least once a year, we will undertake a formal review of this Policy to ensure that it is both suitable in terms of achieving best execution for our clients and that it is being implemented correctly. This will be conducted during the year as well as in case of any material change. This review will include an assessment of the execution venues used and that these remain those most likely to facilitate the achievement of the best possible result when executing orders. If any significant change to this Policy is made for whatever reason (including material changes to the execution venues we use), we will make this information available directly to our clients or on our website.

We will also monitor our effectiveness in achieving best execution of our orders on a daily basis by comparing the trades we execute against similar orders executed by other firms. We will do this by using data provided by the relevant exchanges or market maker vendors, using a third party software analysis tool designed specifically for this purpose. For those financial instruments where data of this kind is not available (e.g. unit trusts) this assessment will be made, bearing in mind the data available and the specific circumstances of these instruments.


Last updated: January 2018

 
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