terms and conditions for trading in financial instruments - Danske Bank

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Trading venues The bank selects different trading venues considered capable of providing the best possible order execution. A list of the principal trading venues we use and details of our selection criteria are available in our Order Execution Policy financial instruments. You can find the policy on our website. We may choose to trade directly in a regulated market if we are a member of such market. (This is the case for NASDAQ OMX Copenhagen for example). Furthermore, we can choose to trade in other organised markets, multilateral trading facilities (MTFs), internal crossing networks, including dark pools and similar trading facilities. Trading may be effected either directly or through a trading venue. We may act as a counterparty (buyer or seller) to a trade executed in a regulated market, MTF or another market (contracting in our own name). The contract note will set out that the trade was made on the relevant market with the bank as the counterparty. We can also execute your order outside a trading venue. This is referred to as over-the-counter trading (OTC). In such case, it is either a immediate trade directly with us (see 2.1.2) or a transaction with another broker selected by us. If a broker is the buyer or seller in the trade, the contract note will state that the trade was OTC. In addition to executing the trade directly with himself, the selected broker can choose to execute the trade on or through a market or trading facility. For certain securities, your order will not be executed as a purchase/sale, but as a subscription/redemption with a provider. This is the case when a relevant security is offered for the first time (issue). Also, units in collective investment schemes can be subscribed for or redeemed on a ongoing basis with the provider of the relevant collective investment units instead of being traded in a market. Subscription and redemption is effected according to the rules of the relevant prospectus. 4 Time of execution We will seek to process your market order as quickly as possible. If an order is placed outside the space of time when we process orders in the relevant security, we will not seek to execute the order until we again open trading in the relevant market. Order execution When the bank or a selected broker executes a market order, the rules governing trading of the relevant market or broker will apply. Each market or broker offers different options for trading market orders. The bank or the selected broker determines on your behalf how to use these options. When we seek to execute a trading order • the order may only be executed to the extent that it can be matched in whole or in part with bids or offers. • the order may be split up or aggregated and traded at different prices during the trading day There may be different reasons why an order is not executed in whole or in part. The most common reason is that price developments do not allow for trading at the limit price indicated or due to a lack of liquidity in the relevant security. If your order is placed late in the trading day, there is limited time in which to trade, and thus even securities that are normally liquid may not have the required liquidity. 2.1.2. PRINCIPAL TRADING (IMMEDIATE TRADE), INCLUDING SYSTEMATIC INTERNALISATION We offer to execute orders as principal (immediate trade) in a range of Danish and international securities. The bank determines on an ongoing basis the securities offered and the maximum amounts available for trading. In a immediate trade, you trade with the bank as the buyer or seller (counterparty) at a price we determine. If you accept the price, the trade is concluded. Immediate trade eliminates the risk of price fluctuations that may occur from the time you place the order until execution. Furthermore, it provides assurance that the order is executed in full.
We reserve the right to restrict the execution of orders in shares if we receive a large number of orders for the same shares at the same time from one or more customers. Please note that you are not permitted to influence the price by placing conflicting orders yourself in the market in which you wish to buy or sell securities. Several judgments given in the Danish High Court have established that such conduct constitutes price manipulation which is a violation of the Danish Securities Trading Act. Price manipulation is punishable by fine or imprisonment. In relation to certain principal trading, supplementary rules on systematic internalisation apply. See below. Determination of prices of principal tranding (immediate trade) Our prices for principal trading are equal or more favourable than the prices we can obtain ourselves on the relevant market – taking into account time, volume and trading conditions. For securities traded on NASDAQ OMX Copenhagen, Stockholm and Helsinki as well as Oslo Børs, the bank will determine a price within or equal to the best bid or offer on the relevant markets. If you trade after closing on these markets, we determine the price for principal trading on the basis of the closing price. However, the price will be changed if events affecting prices have occurred after the market has closed. For other securities and in the event that no current bids/offers are available on the relevant markets, we determine the price for principal trading taking into account current market conditions, including • supply and demand • the price level of the most recent trades • events affecting the price – domestic as well as international • available information about the issuer and the issuer’s line of business • the price developments of similar securities – (bonds/fixed income only) • price information from issuers (only applicable to units of collective investment schemes, e.g. units of investment funds). Unless otherwise agreed, we decide in which currency the immediate trade in international securities should be settled. We update our bid/ask prices for such equities on an ongoing basis. In unusual market conditions, we may withdraw our bid/ask prices. Specific information about systematic internalisation We are required to publish our prices of immediate trades on an ongoing basis for a number of equities with a large trading volume in a regulated market. This is due to the fact that we frequently, systematically and in an organised manner buy or sell securities and match customers’ orders outside a regulated market – which is also referred to as ’systematic internalisation’. Your contract note will state if the immediate trades was executed according to the rules governing systematic internalisation. A list of these equities are available at www. danskebank.dk. Immediate trades in equities executed according to the rules governing systematic internalisation are effected at the bank’s published price of real-time transactions applicable on receipt of your order. Caps apply to such trades. The caps and the prices of immediate trades are available at www.danskebank.dk. 2.1.3 AVERAGE PRICE ORDER Average price orders is an option offered by us for trading in certain securities. It implies settlement at an average price. You trade with the bank as the counterparty and trading venue. 2.1.3.1 AVERAGE PRICE TRADING BASED ON PRICES QUOTED ON NASDAQ OMX COPENHAGEN You can trade at average prices in selected shares and units of collective investment schemes admitted to trading on NASDAG OMX Copenhagen. 5
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terms and conditions for trading in financial instruments - Danske Bank

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