In general, the execution strategy and associated execution methods, including where and how to execute an order, are made based on the functional and economic merits e.g. liquidity, suitability, certainty, and settlement infrastructure of a broker or a venue. Our selection of a particular broker to execute an order is based on a number of criteria, including their:

• Market and security familiarity
• Access to liquidity or willingness to commit risk to principal trade
• Financial stability and certainty of settlement
• Reliability and Integrity of maintaining the confidentiality
• Soundness of technological infrastructure and operational capabilities
• In case of new Issues: The broker´s capability to provide a subscription facility in the primary market
• Safeguards and compliance controls to protect Clients
• Pricing and costs for execution-only services
• Ability to provide transaction cost analysis (TCA)
• Access to Centralized Risk Book (CRB)
• Ability to provide analysis of the speed of execution
• Level of control over interactions with internal and external Systematic Internalizes (SIs)
• Approach to double caps and new large-in-size (LIS) venues
• Smart order routing (SOR) logic and Algorithmic trading strategies
• Ability to produce customized reports, trade-related performance data, performance attribution, and risk reports (including breach violations and rejection) on a periodic basis
• Ability to provide assisted trade reporting
• When we pass orders to external brokers who have connectivity, special expertise, or the country exposure required for the execution of the orders the following will have also to be considered:

Rely on a broker for Best Execution: When doing so, we would take into account if the broker has MiFID II compliant Policy, if applicable, and also has the ability to evidence Best Execution at our request;
Rely on a broker for use of order execution algorithms: we do not host our own algorithms but do make use of algorithms offered by brokers. When doing so, we would make the broker selection based on the defined trading strategy of the algorithm that the broker makes available and the Execution Venues that the broker executes on.
We aim to make use of electronic venues including MTFs, SIs, and OTFs, wherever possible. This means that the order will be made available on the venues (i.e. request for quote submitted) on a best-effort basis to avoid market movements adversely impacting execution.
We determine the Execution Venue for order execution in respect of a particular order by taking into consideration of the followings factors:
The instrument types are mainly traded the particular venue with competitive prices are available

• The depth of liquidity and the relative volatility of the market
• The speed and likelihood of execution
• The creditworthiness of the counterparty on the venue
• The quality, cost, and arrangements supporting clearing and settlement

We have identified the brokers and Execution Venues, as listed in Appendix Sections A and B, on which we place significant reliance on meeting our Best Execution obligations on a consistent basis.
There may, however, be occasions when trade-by-trade product-specific decisions out a Client order will require executing the order outside trading venues. The Best Execution obligation requires us to make a trade-by-trade product-specific decision as described in the sections below. Equities and Equity Derivatives Orders of cash equity and listed Equity derivatives are generally passed to executing brokers for execution who are exchange members with access to the relevant exchange, or who have special expertise and country exposure required for Best Execution. The price is generally regarded as the primary factor for obtaining the Best Execution unless any Specific Instruction requires otherwise. There may be circumstances that factors other than price will take precedence in order to achieve the Best Execution result. For example, speed, higher likelihood of execution and settlement are prioritized when market disruption or system outage takes place. In certain situations, where a market is illiquid or the order is of a large size, in order to reduce market impact, we execute the order directly with the market maker or liquidity provider to seek liquidity needed, hence a high likelihood of execution and settlement more important than price.
The relative importance of the following secondary criteria is determined on a trade-by-trade basis: The nature of the instrument and size of the order: Whether an instrument to be traded has a unique feature requires special attention when selecting a broker and how liquidity is available at the time of execution Likelihood of the execution: The broker´s knowledge, exposure, and capability to execute the order Likelihood of settlement (settlement risk): The broker’s ability to ensure securities will be delivered on the settlement date Broker´s willingness and capacity: In case of a high volume transaction, whether a broker can commit their own capital to enter into a principal trade; whether the broker specializes in block orders or large program trades Speed: How fast a counterparty can react and process the order of a certain size Equity – like instruments (Convertibles, Certificates, ETFs, and similar instruments) ETFs are mainly executed via RFQ directly with brokers on an MTF venue (e.g. Trade web). We will typically ask multiple brokers for a price and will then execute at the busiest-prevailing ice. The competition among brokers on MTF is advantageous for the price-discovery process.
The ETF price is transparent and available as a reference for selecting quotations from brokers. The price is the primary factor in the execution decision The Orders related to certificates may be either executed directly with their issuer or passed to a broker for execution (a listed instrument).
The execution of convertibles often takes place via RFQ in Trade web (Operating company: Trade web Europe Limited) by considering primarily the following factors (unless instructed differently):
Order size: it needs to be considered in relation to both the size of the issuance of the security and to the market capacity and volatility
The Likelihood of the execution Access to Liquidity Fixed Income
The fixed income and often subject to limited liquidity and price transparency. Therefore, these instruments are mainly traded OTC (except listed instruments). We will, where instruments, obtain competing quotes to achieve the best possible results at the given market circumstance.
Debt Instruments When trading Debt instruments on an MTF (e.g. trade web, Bloomberg Trading, Marketers), this is typically done on an RFQ basis and, multiple counterparties are put into price competition simultaneously to achieve a fair price. This execution type is deemed to be reasonable for instruments, where sufficient liquidity is provided through a reasonable number of Execution Venues (counterparties) quoting prices electronically.
When possible, we typically consider various venues and source quotes from multiple market counterparties before accepting the quote that achieves the best possible result. Unless specifically instructed, the primary execution factor is price. We also take into account the following factors as secondary determinants, such as:

• Order Size
• Speed
• Complexity: the instrument to be traded is bespoke (tailor-made) and illiquid in nature
• Likelihood of Execution and Settlement
• Sufficient level of market liquidity is available at the time of execution

For orders of large sizes, certainty of execution, and reduction of the market the impact and speed of execution might have greater importance than price. Therefore, the choice of available venues and the number of potential counterparties, as well as the relative importance given to execution factors are determined on a trade-by-trade basis.
In case of illiquid securities, we can only execute the orders by contacting potential counterparties via phone or email to screen counter parties on the market, as there is no electronic trading facility available for trading this type of securities.
In absence of price competition, we will verify the fairness of the available price by assessing the valuation based on available prices of related or comparable securities with adjustment of certain parameters, such as credit rating, maturity and, size. Hence, the primary factor to be considered in these circumstances is the likelihood of execution.
Money market instruments are mainly liquid and at short maturity which can be traded in the same way as liquid debt instruments as above mentioned. The price competition via RFQ is possible and Price orders by taking the price as primary determinant, unless the Client instructs otherwise.
OTC derivatives (Interest rates derivatives and credit derivatives)
When executing orders on OTC derivatives via RFQ on trading venues or with a market maker bilaterally, the relevant agreements with the counterparties will be the primary execution factor, followed by price. We shall check the fairness of the price by gathering market data used in the estimation of the price of such product where possible or by referencing similar products parable products.
In addition to the secondary determinants covered for debt instruments in general, the following factors will also be considered:
Collateral and associated credit risk Other related costs e.g. novation and balance transfer
Trading Capacity: Broker maintains positions in the underlying security and have significant flow when trading on the side (buyer/seller)
Expertise/Skill: Broker’s experience and skill to the particular instrument and underlying securities Information Flow: Broker provides superior market intelligence
Listed Derivatives (Interest rates derivatives and credit derivatives)
Orders for listed derivatives are transmitted to the registered intermediaries (brokers) with access to the relevant exchanges. The relevant agreements with the brokers and execution commission will be the primary execution factors.
Secondary determinants are:

• Access and connectivity to the relevant Execution Venues & exchanges
• Financial stability and certainty of settlement
• Soundness of technological infrastructure and operational capabilities
• Market and security familiarity
• Information Flow: Broker provides superior market intelligence Foreign Exchange (Currency Derivatives)

We execute orders on various FX instruments including: FX-future, FX-option (both exchange-traded nd OTC), FX-forward, FX-Swaps, as well as NDF (Non-deliverable FX forward).
We use trading venues, as listed in Appendix Section B, to obtain several simultaneous competitive quotes and select the most advantageous one to achieve Best Execution. Therefore, the price is the he primary execution factor.
Certain FX OTC derivative instruments are not standardized products due to their tailor-made nature, for instance, with unusual long maturity to meet special needs of the investors. Therefore, these instruments are traded OTC where we need to verify the prices through specific pricing tools considering all relevant pricing parameters such as interest rates, volatility, and the spread. We generally ask for quotes from two or more market makers for comparison, if applicable.
Securities Financing Transactions
We execute all SFTs in accordance with the relevant Client agreements or Fund statutes. The transactions are all conducted on OTC basis and therefore no official market price or level is available for SFTs.
The relevant agreements with the counterparties and the lending rate that we are able to achieve will be the most significant factors, however there are other determinants which affect a loan and its level. Therefore, in order to achieve the best possible result on a consistent basis, we also take into account the following factors:

• Approval of counterparties
• Rating of lent security
• Market liquidity in lent security
• Whether a proposed counterparty meets credit risk criteria that we impose
• Settlement arrangements and costs of entering into the loan
• Terms of trade
• Value of loan
• Collateral criteria

We will get in contact with potential counterparties directly through matching systems or they may contact us. The SFTs brokers on which we place significant reliance in meeting our Best Execution obligations on a consistent basis are listed in Appendix Section A.
We will only lend securities at the standard collateral schedule approved by Risk Management. In certain specific cases, the Client may also give us Specific Instructions about the loan that they are prepared to offer, we will follow these instructions to meet our Best Execution obligation. We establish a “fair allocation” process with the aim of ensuring that loans are allocated fairly.