o Provide our institutional clients with access to our dealing platform with the appropriate levels of service
o Charge in an appropriate and transparent way
o Be industry experts in our chosen research sectors
o Provide high quality advice for our corporate clients
WHAT IS MiFID II?
The Markets in Financial Instruments Directive (MiFID) is the framework of European Union (EU) legislation for:
o investment intermediaries that provide services to clients around shares, bonds, units in collective investment schemes and derivatives (collectively known as ‘financial instruments’), and
o the organised trading of financial instruments
MiFID was applied in the UK from November 2007, but is now being revised to improve the functioning of financial markets in light of the financial crisis and to strengthen investor protection.
The changes are currently set to take effect from 3 January 2018, with the new legislation being known as MiFID II – this includes a revised MiFID and a new Markets in Financial Instruments Regulation (MiFIR).
IN WHAT CAPACITY DOES N+1 SINGER OPERATE?
N+1 Singer is an investment firm offering execution services as a broker and market maker.
HOW WILL YOUR DEALINGS WITH N+1 SINGER CHANGE?
To prepare for unbundling N+1 Singer is implementing a new charging structure for its research and other services which will enable the buy side to account for their fees to clients and comply with the new regulatory rules.
We are committed to providing insightful and thought provoking research to our clients. In terms of payment channels N+1 Singer will support clients who wish to pay for research either out of their own funds or via a Research Payment Account.
We are finalising our research product and have been taking market soundings.
Will N+1 Singer become a Systematic Internaliser?
No – As a registered market maker on the London Stock Exchange (LSE) we make quotes publically available by publishing two way prices and providing liquidity.
N+1 Singer executes on own account, and our UK equity trading is trade reported to the LSE. As a result, these trades are brought under the rules and systems of the Exchange and are considered to be “on-venue” trades.
As part of the firm’s preparations for MiFID II, N+1 Singer will be updating our Best Execution Policy to provide further information on exactly what best execution means and it is projected that this policy will be available from Q4 2017.
The firm will also be making RTS28 (top 5 venue) disclosures from Q1 next year, and these will be made public via our website.
In general terms MiFID II has increased the reportable fields and the types of asset classes. N+1 Singer currently transaction reports under MiFID and will continue to do so under MiFID II once we have completed enhancing our internal processes and databases to cater for the new fields. In doing so we will require the following additional information:
o Legal Entity Identifier (for all entity clients)
o Natural Person IDs (for all private/custody clients)
o Short sell indicator (on all sell orders in shares)
The new legislation requires post trade transparency through real-time trade reporting. Post-trade transparency will be required for all equity asset classes (shares, ETFs, certificates, depositary receipts and other similar) and non-equity asset classes (fixed income, structured products, emission allowances and derivatives).
Terms of Business
MiFID II will require N+1 Singer to update many of our client facing documentation. We envisage that some will be small changes and others would be more extensive such as Best Execution or the firm’s Order Execution Policy.
WHAT IS N+1 SINGER CAPITAL MARKETS LIMITED’S LEI NUMBER?
MIFID II – CONTACT DETAILS
For any client related queries or questions please refer them to the following:
Email: firstname.lastname@example.org / Tel: 02074963090