Introduction
Gametech (Cyprus) Ltd (hereafter the “Company”) is an Investment Firm incorporated and registered under the laws of the Republic of Cyprus, with registration number C342580. The Company is authorized, and regulated by the Cyprus Securities and Exchange Commission (hereafter the “CySEC”) under the license number 291/16
This is the Best Execution Policy of Gametech (Cyprus) Ltd, with the application of the “Investment Services and Activities and Regulated Markets Law of 2007”, pursuant to the European Directive MiFID – Market in Financial Instruments Directive. MiFID is the European Parliament and Council’s Directive 2004/393 EC, for financial markets.
The Company is required to set up this policy and take all reasonable steps to obtain the best possible result for its clients (“best execution”) either when executing client orders or receiving orders for execution in relation to financial instruments.
The Policy sets out a general overview on how orders are executed, and the factors as stated below, that can affect the execution of a financial instrument.
The Company applies the Policy upon acceptance of an order and also when a client gives no specific instruction on the execution method. Nevertheless, when the client gives a specific instruction on an order, the Company will execute the order following such instruction. If the Company receives a specific instruction on an order, this may prevent the Company from implementing the Policy to obtain the best possible result for the execution of the order.
The Company is unable to guarantee that “best execution” will occur in respect of every order; however, the Company will provide the best possible result on a consistent basis. Client instructions may take precedence over this policy, and such instructions are communicated and subsequently recorded by the Company, but it is important to note that as the company only accepts trades by clients submitted directly through the Nenx app, the company will never act upon any client orders that have been submitted outside the Nenx App, for example by telephone, fax, verbally or orally.
In particular, the Best Execution Policy sets out the strategy that the Company use, the key steps it takes to comply with the overarching best execution requirement and how those steps enable it to obtain the best possible result.
Also, the Company takes into account the following criteria when determining the relative importance of the best execution factors:
Hence, the Company when providing a service to retail clients may consider speed, likelihood of execution and settlement, the size and nature of the order, market impact and any other implicit transaction costs and give them precedence over the immediate price and cost factors if they are instrumental in delivering the best possible result in terms of the total consideration to the retail client. As far as the professional clients are concerned the Company should consider the previous factors as it is unlikely to be acting reasonably if it gives a low relative importance to the net cost of a purchase or the net proceeds of a sale. There might be circumstances, however, where other factors will be more important for professional clients and MiFID clearly allows flexibility in this regard.
Scope
The Policy shall apply whenever the Company executes orders on behalf of its clients. The Company will always act as principal (counterparty) when executing client orders. The Company does not guarantee that when executing a transaction, the client’s price will be more favourable than one which might be available elsewhere.
Application
Every order which the Company may take is accepted and executed on the basis that the Company is acting on its own account as principal and not as an agent for the client. It should be noted that the Company does not guarantee that when executing a transaction, the client’s price will be more favorable than one which might be available anywhere else.
The Company applies the Policy upon acceptance of an order and the Company will execute the order following this instruction even if this may prevent the Company from implementing the policy in order to obtain the best possible result for the execution of the order.
Criteria of Execution
In order to apply this Policy, the Company is required to consider several factors when executing a client order. These factors are the following:
Price
The Company will provide its own tradable prices for all markets sourced through the independent and reputable price provider Six Financial Information. For Bitcoin pricing, the Company is using BitStamp.net. The Company reviews its independent price providers at least once a year to ensure that correct and competitive pricing is offered.
Costs
When the Client opens a position in some types of financial instruments a commission or any other fee will apply. In such a case, the details of these costs are available on the Company’s website.
Size of order
All orders are placed in lot sizes (1 lot = 1 unit of the account currency). A lot is a unit that measures the transaction amount and it is different per each financial instrument. If the client wishes to execute a large size order, in some cases the price may become less favorable considering the liquidity in the market. The Company reserves the right not to accept a client order in case the size of the order is large and cannot be filled by the Company.
Speed
Prices change over time and the frequency with which they do varies with different financial instruments and market conditions. The tradable prices are distributed via the Company’s trading platform and therefore the technology used by the client to communicate with the Company is very important. The client should use good internet connection speed in order to place the orders without delay in order the order to be executed at a better market price offered by the Company via its Nenx platform. For example, the use of a wireless connection, or dial up connection, or any other communication link that can cause a poor internet connection can cause unstable connectivity to the Company’s trading platform. The result for the client is to place his orders on old prices, where the Company might decline and provide him with a new quote (i.e. re-quoting).
Nature of the order
Obviously, the characteristics of an order can affect the execution of client order. The client can give the following order:
Market Order (Instant Order)
This is an order to buy or sell at the price available at a given time. The order will usually be filled at the price the client sees on the Company’s trading platform screen. Occasionally, if the market has moved while the client is placing his order, the price may differ.
screen. If the market has moved while the client is placing the order, the price may differ.
Likelihood of execution
Because of the different levels of volatility that affect price and volume the Company seeks to provide client orders with the fastest execution. All client orders are executed at the available current market prices. However, under certain market conditions (i.e. due to limited volume in the market) orders may not be filled at the exact price requested but at the best available market price offered by the Company. This may occur during news announcements, during periods of volatile market conditions, on opening gaps or on possible gaps where the underline instrument has been suspended or restricted on a particular market.
Effect of other factors on the execution of an order
The Company reserves the right to modify the Company spread and the client may experience widened spreads and execution at the best available price under certain market conditions (for example, but not limited to, fundamental announcements, where there is a fast moving market or low liquidity).
Trades will be automatically priced and executed by the Company’s automated internal trading systems. However, depending on factors, for example, unusual market conditions or the size and nature of the client order a financial instrument may be manually priced and/or an order may be manually executed.
During times of high demand manual pricing and/or execution may cause delays in processing an order which in turn can have an impact on the price and speed at which the order is executed. The Company is committed to providing the most competitive trading technology and is striving to minimize the risk of delays.
In the case of any communication or technical failure, as well as any incorrect reflection on the quotes feed, the Company reserves the right not to execute an order or change the opening and/or closing price of a particular order. Furthermore, the company is not and cannot be held liable for any such unexecuted orders, rejected orders or change in the opening and / or closing price of any particular order due to such communication or technical failures. The Company will consider trades to be void if the price is stale at expiry. Furthermore, the Company can at any point void a settled trade - for instance the feeds were down or were at a bad price or there is a suspicion of fraudulent activity by the client i.e. any type of hacking of the company’s systems.
Market Impact
The Company’s quoted prices may be affected by various factors which could also affect the previous mentioned factors. The Company will take all reasonable factors to ensure the best possible results for its clients.
Execution Venue
Execution venues are the entities to which the orders are placed or to which the Company transmits orders for execution. The Company will enter into all transactions with the client as principal (counterparty) and act as the sole execution venue for all client orders. The client is required to open and close a position of any particular financial instrument with the Company via its trading platform.
Where there is only one possible venue, best execution is achieved by execution on that venue. Best execution is a process, which considers various factors, not an outcome. This means that, when the Company is executing an order for a client, the Company must execute it in accordance with its execution policy but the Company does not guarantee that the exact price requested will be obtained in all circumstances and, in any event, the factors may lead to a different result in a particular transaction.
In certain circumstances this obligation will not apply, for example at a time of severe market turbulence, and/or internal or external system failure, where instead the ability to execute orders on a timely basis will become the primary factor.
The client acknowledges that all transactions entered in any particular financial instrument with the Company are executed outside a regulated market or a multi-lateral trading facility (MTF) and the client is exposed to a greater risk of a possible default of the counterparty (i.e. the Company).
Client Cancel Trade
The client has the right to request to cancel any of his / her electronically submitted trade in our trading App within the first three (3) seconds (the maximum allowed time) of submitting a trade in any direction and for any duration that is available by the company, in any available market within our trading App. The ‘Cancel Trade’ can be achieved simply by clicking the ‘Cancel Trade’ button which will be shown and visible within the App screen only for the duration of these first 3 seconds. If a trade is successfully cancelled within the deadline, this will be clearly shown as ‘Cancelled’ on the specific market in our App screen. If the Client does not click the ‘Cancel Trade’ button within the first three (3) seconds deadline, then the trade will be accepted and executed by our trading platform (as per our Best Execution Policy).
In order to safeguard the company from abuse of this ‘Client Cancel Trade’ option, the company reserves the right to suspend any client who is determined to be abusing this feature. More information on the above can be found in our Terms & Conditions.
Client Consent
When establishing a business relationship with the client, the Company is required to obtain the client’s prior consent to this Policy as well as all the other policies of the company. To be more specific, the Company is required to obtain the client’s prior consent before executing client orders or receiving and transmitting orders for execution outside a regulated market or a multi-lateral trading facility (MTF). The client is informed that the Company always acts as principal (counterparty) and is the sole execution venue, which is not a regulated market or a multi-lateral trading facility (MTF).
The Company will obtain the above consents in the form of a general agreement. The Company will treat clients to have received and agreed to the which is available via the internet on our www.nenx.com website and or Nenx App, and who in addition have accepted the Trading Terms and Conditions of the Company by clicking the relevant radio button upon registration as new clients. By accepting our Terms & Conditions, the Company will treat the clients, as clients who have given express consent to the Policy as well as given consent to the Company to execute or receive and transmit an order for execution outside a regulated market or an MTF.
Review and Monitoring
The Company will review and monitor the effectiveness of this policy at least annually or when there is a material change with a view to identifying and, where appropriate, correcting any deficiencies revealed by the review. We will assess whether the execution venues and brokers to whom we transmit orders provided the client with the best possible result. From time to time it may be necessary to make changes to the Policy. The Company will not notify clients separately of changes other than substantial material changes to this policy. Clients should therefore refer from time to time to the website of the Company at www.nenx.com for the most up to date version of this Policy.