Best Execution Policy
Currently, we do not accept orders for securities written in this policy.
Best Execution Policy
Established in April 2005
Revised on May 1, 2018
Shinsei Securities Co., Ltd.
This Best Execution Policy (the "Policy") sets forth the policy and execution methodology of Shinsei Securities Co., Ltd. (the "Company") on the best terms for customers in accordance with Article 40-2, Clause 1 of the Financial Instruments and Exchange Law.
Upon acceptance of a customer order for securities listed on a financial instrument exchange market (hereinafter referred to as the "Market"), and in the absence of particular customer instructions regarding execution, the Company will endeavor to execute the order pursuant to the Policy described below.
1.Securities Covered by the Policy
Securities covered by the Policy are "Listed Share Certificates,
etc." provided in Article 16-6 of the Enforcement Ordinance of the
Financial Instruments and Exchange Law, such as share certificates,
bonds with share option, ETFs (beneficiary interest in stock price
index-linked investment trusts) and REITs (real estate investment
trust securities) listed on the Market in Japan.
The Company will not handle share certificates and bonds with share option designated as Phoenix Brand, "Tradable Securities" stipulated in Article 67, Clause 18, Paragraph 4 of the Financial Instruments and Exchange Law, or share option certificates.
2.Method for Execution on the Best Terms
The Company will not directly act as a party to sale/purchase with respect to customer orders but will treat all orders as agency orders. The Company will place all orders of the customers in connection with the Listed Share Certificates, etc. on the domestic Market, and will not handle the sale/purchase outside of the Market including PTS (Proprietary Trading System).
- Upon receipt of an agency order from a customer, the Company will promptly place the order on the domestic Market where the relevant issue is listed. With respect to an order received when the Market is closed for trading, the Company will place the order on the Market after the Market is reopened for trading.
The agency order stated in (1) above will be placed on the
Market in the following manner.
- If the relevant issue is listed on only one Market (Single Listing), the order will be placed on the said Market.
If the relevant issue is listed on two or more Markets
(Multiple Listing), the order will be placed on the Market
selected by the Company as the most liquid Market based on the
trading volume, etc. of the relevant issue during certain
period of time.
The Company´s staff in charge will explain the specific details about the selected Market if inquiry is made by the customer.
- If the Company is not an associate participant of trading on, nor a member of, the Market selected pursuant to (a) or (b) above, the Company will place the order through a party with which the Company has concluded the agreement for placement of orders, from among associate participants of trading on, or members of, the Market.
3.Reasons for Selecting the Said Method
Most investor supply and demand is concentrated in the Market and it
is considered that executing orders in the Market is advantageous in
terms of liquidity, probability of execution and speed, as compared
to executing orders off exchange. The Company therefore believes
that it is most advantageous for customers to execute transactions
in the Market.
Furthermore, when the relevant issue is listed on multiple Markets, the Company also believes that it is most advantageous for customers to execute transactions in the Market that has the highest liquidity.
- If a customer issues instructions concerning the method of execution of the order (such as the request for the Company to directly become a party to sale/purchase, request on the Market to place the order on, request on the time frame of trading, etc.), the Company will execute the order by the method of execution according to the instructions.
- There may be cases where the order has to be executed by a method different from the method to be selected under the Best Execution Policy due to system failure, etc. Even in such cases, the Company will endeavor to execute the order under the best condition at the time.