RHB Bank Singapore Best Execution Policy for Capital Market Products

 

1.  Introduction
1.1  Pursuant to the Notice on the Execution of Customers’ Orders (SFA 04-N16) and accompanying Guidelines (SFA 04-G10) issued by the Money Authority of Singapore, RHB Bank Berhad Singapore (“RHB Bank Singapore” or “we”) is required to establish a written policy on the:
 
a. 

placement and/or execution of customers’ orders on the best available terms, and
b. 

placement and/or execution of comparable customers’ orders in accordance with the time of receipt of such orders.
 

(“Best Execution Policy”).

2.  Scope and Application of Best Execution
2.1

When we accept your order in relation to capital market products identified under the Securities and Futures Act 2001 (“SFA”), we will execute the transaction on your behalf or place your order with others for execution. We will apply best execution in such circumstances, or in other circumstances where we have expressly agreed to exercise best execution in accordance with this Best Execution Policy.
2.2

  This Best Execution Policy applies to transactions where we act in our capacities as principal or agent.   
2.3

 This Best Execution Policy is not applicable to our clients who are institutional investors. 
3.
Specific Instructions
3.1

Where you give us a specific instruction in relation to an order, we will follow that instruction so far as is reasonably possible when executing the trade. By following your specific instruction, we will have satisfied the obligation to provide you with best execution in relation to that transaction.
4.  Best Execution Factors
4.1

In order to place or execute your orders for OTC Derivatives, Structured Products, and Foreign Exchange (Forwards and NDFs), Bonds and Fixed Income on the best available terms, we will consider the following factors when we are acting in our capacity as principal:

  • Price – price at which your order is executed, excluding our own execution charges. Price includes costs such as execution venue fees, clearing and settlements prices and any other fees if applicable. 
  • Speed – time it takes to execute your order.
  • Likelihood of execution – the rate at which we are able to fill your order or at least a substantial part of it, in its entirety. 

Likelihood of settlement – we expect transactions that we execute to settle in a timely fashion.

  • Size – Size of any request for quote may affect the quote price.
4.2 

We may also take into consideration the following general criteria when determining how to achieve best execution of the order:

  • the characteristics and nature of the order, including any specific instruction received;
  • the characteristics of the financial products that are subject of the order; and
  • the characteristics of the execution venues or brokers to which the order can be directed.
4.3

For the activities relating to Initial Public Offerings (IPO) and Private Placements (PP), we may not be able to guarantee your placement as it depends on the Issuer’s confirmation where factors such as timing of order, investor’s profile may be considered.
4.4

We reserve the right to intervene in the execution if such orders would result in adverse market movement (e.g. large orders).
5. Execution Venues
 
5.1 

We may engage affiliates and third-party service providers to assist in the execution of orders. Where we do so, we will perform due diligence on such third-party service providers, person or organisation.
 
5.2 

For business where we transact in our capacity as principal, you will deal with us, one of our offices, branches, affiliates or any member of the RHB Banking Group. As such, the execution venues we use are generally to clear our own market risk.

  
5.3

​​​​​​​In executing or placing your orders, we will monitor which venues are likely to provide, on a consistent basis, the best available terms for you. We may not connect to all venues or sources of liquidity.

  
6.  Monitoring and Review
 
6.1  We will perform monitoring and surveillance on the effectiveness of the best execution arrangements and assess on a regular basis if changes are required.
 
6.2 

​​​​​​​We will assess whether the entities to which we transmit orders or execute through have delivered the best possible result for you on a consistent basis.
 

 

If you require further clarification on our Best Execution Policy, you may contact your Relationship Manager or Sales Representative for more details.