Information on the African Alliance Best Execution Policy
This policy applies to the Professional Clients of African Alliance Securities Trading Limited (African Alliance) and to the execution of orders in Financial Instruments. African Alliance will only execute Client Orders as agent.
When executing Client Orders we will act in the best interests of our clients at all times and will take all reasonable steps to obtain the best possible result for our clients taking into account the criteria and factors set out below, subject to any instruction given by our client (see section 4).
When we execute an order on behalf of our clients, we will determine the relative importance of the best execution factors based on our experience and judgment, in light of available market information with the prime aim of prompt, fair and expeditious execution of trades.
The Execution Factors to be taken in to account when executing Client Orders include but are not limited to:
Broker execution – placing the order with a third party, including an affiliate, with whom we have entered into an agreement for handling Client Orders.
The list of Execution Venues on which we may execute a Client Order is set out below
Where a client gives a specific instruction for the execution of a Client Order then the order will be executed in accordance with those instructions. The client should be aware that providing that instruction may prevent us from taking some of the aforementioned steps to obtain the best possible result for the execution of that Client Order (to the extent of the instructions). These transactions will be deemed to have achieved the best possible result for clients.
African Alliance endeavours to execute Client Orders in an expeditious and fair manner for all clients.
Where appropriate, we may aggregate a client order with an order from another customer, where we believe that by doing so it is likely that the aggregation will work to the overall advantage of each of the clients concerned.
We review this best execution policy at least annually and whenever a material change occurs that affects our ability to continue to obtain the best results for our clients. We also monitor the effectiveness of our best execution policy and execution arrangements to identify and where appropriate correct any deficiencies. This will include an assessment of whether the Execution Venues included in this policy continue to provide the best possible result for our clients.
Client Orders may not be received, or may not be executed in accordance with the policy, due to situations beyond our reasonable control, including disaster, abnormal market conditions, regulatory requirements, etc. We will not be bound to provide best execution in such circumstances.
African Alliance adopts procedures relating to its selection of brokers. Before adding a broker to its list of counterparties evaluates the broker:
The selection of our execution partners is monitored regularly and reviewed at least once a year.
Professional Clients – an approved client of African Alliance
Client Orders – an instruction to buy or sell a Financial Instrument
Financial Instruments – Equities and Bonds
Execution Factors – as listed in section 2
Execution Venue – as listed in section 3
Whilst we take all reasonable steps to satisfy ourselves that we have processes in place that can reasonably lead to best execution of client orders, we cannot guarantee that we will always be able to provide best execution of every order that our clients place with us. The diversity of markets and the kind of orders that our clients may place with us lead us to take different factors into account when assessing the nature of our best execution policy. For example in some markets price volatility may mean that timeliness of execution is the main priority, whereas in other markets with low liquidity the ability to fulfil the client’s order may be considered best execution.
Providing best execution does not mean that we assume any fiduciary responsibilities over and above those agreed to in contracts or specific regulatory obligations placed on us. The policy is not intended to create third party rights or duties that would not already exist if the policy had not been made available and it does not form part of any contract between African Alliance or of any of its affiliates and any client or prospective client.