ANNUAL BEST EXECUTION DISCLOSURE

RTS28 Annual Report
For the period 1 January 2017 – 31 December 2017
Verno Capital UK LLP

April 2018

 

Summary

There were no conflicts of interest, no specific arrangements for discounts, rebates or non-monetary benefits. No trading was executed on an exchange directly. There was no difference in order execution based on client category. The only clients were professional investors, so there were no retail client orders. No data or tools were used in relation to quality of execution and there was no use of output from a consolidated tape provider.

Equities

The relevant execution criteria were price, liquidity and order confidentiality. The firm maintains an approved broker list. Any changes to the list are approved by the Risk Committee which includes senior management of the firm. Two brokers stopped providing services and one broker was removed as no longer required. There were some changes in types of trading with brokers due to MIFID II.

A review of the brokers was carried out internally using 10 factors. The top five brokers in the internal review differed to those in Table 2 as approximately 75% of our trading is dictated by liquidity/availability of the security, which is the most important factor in our best execution.

Derivatives

During the year there was a single derivatives broker with an ISDA in place and one other broker that was used on an ad hoc basis only where necessary.

Bonds

There were no bond trades executed during the year and so no review was performed.

We are satisfied in the circumstances we have met our obligation to serve the best interest of our clients on a consistent basis.

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Table 2 – Professional Clients

Class of Instrument Equities – Liquidity Band 1      
Notification if <1 average trade per business day in the previous year Y
Top five brokers ranked in terms of trading volumes Proportion of volume traded as a % of total in that class Proportion of orders executed as a % of total in that class % of passive orders % of aggressive orders % of directed orders
Renaissance Capital Limited 213800RZ3GCUXMBGYN59 35.32 25.00 n/a n/a n/a
Sova Capital Limited (formerly Otkrytie Capital International Limited) 213800T9OJMZA69QDM04 18.25 6.47 n/a n/a n/a
Morgan Stanley & Co International plc 4PQUHN3JPFGFNF3BB653 17.66 26.72 n/a n/a n/a
Citigroup Global Markets Limited XKZZ2JZF41MRHTR1V493 10.70 12.93 n/a n/a n/a
Credit Suisse Securities (Europe) Limited DL6FFRRLF74S01HE2M14 8.80 7.33 n/a n/a n/a

Table 2 – Professional Clients

Class of Instrument Equities – Liquidity Band 2      
Notification if <1 average trade per business day in the previous year Y
Top five brokers ranked in terms of trading volumes Proportion of volume traded as a % of total in that class Proportion of orders executed as a % of total in that class % of passive orders % of aggressive orders % of directed orders
Morgan Stanley & Co International plc 4PQUHN3JPFGFNF3BB653 38.00 44.96 n/a n/a n/a
Renaissance Capital Limited 213800RZ3GCUXMBGYN59 25.17 17.83 n/a n/a n/a
Credit Suisse Securities (Europe) Limited DL6FFRRLF74S01HE2M14 16.86 9.30 n/a n/a n/a
Citigroup Global Markets Limited XKZZ2JZF41MRHTR1V493 10.18 17.05 n/a n/a n/a
VTB Capital plc 74OG4PIVJ3TT4O5NSN12 5.19 3.49 n/a n/a n/a

Table 2 – Professional Clients

Class of Instrument Equities – Liquidity Band 3      
Notification if <1 average trade per business day in the previous year Y
Top five brokers ranked in terms of trading volumes Proportion of volume traded as a % of total in that class Proportion of orders executed as a % of total in that class % of passive orders % of aggressive orders % of directed orders
Morgan Stanley & Co International plc 4PQUHN3JPFGFNF3BB653 61.52 37.93 n/a n/a n/a
Renaissance Capital Limited 213800RZ3GCUXMBGYN59 29.80 24.14 n/a n/a n/a
Credit Suisse Securities (Europe) Limited DL6FFRRLF74S01HE2M14 3.86 13.79 n/a n/a n/a
Sova Capital Limited (formerly Otkrytie Capital International Limited) 213800T9OJMZA69QDM04 2.76 3.45 n/a n/a n/a
KCG Europe Limited

549300346EFUPFCXJT79

2.05 20.69 n/a n/a n/a

Table 2 – Professional Clients

Class of Instrument Equity Derivatives      
Notification if <1 average trade per business day in the previous year Y
Top five brokers ranked in terms of trading volumes Proportion of volume traded as a % of total in that class Proportion of orders executed as a % of total in that class % of passive orders % of aggressive orders % of directed orders
Renaissance Securities (Cyprus) Limited IK9CLH4U15AXJVV22968 65 80.61 n/a n/a n/a
Sova Capital Limited (formerly Otkrytie Capital International Limited) 213800T9OJMZA69QDM04 35 19.39 n/a n/a n/a

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The information contained in this document is neither an offer to sell nor a solicitation of an offer to purchase interests in any referenced investment nor does it represent a research report. Securities may not be offered or sold in the United States absent registration with the US Securities and Exchange Commission or an exemption from registration under the US Securities Act of 1933, as amended. This document is only directed at professional investors who have experience of investing in emerging markets and the referenced investments are unlikely to be suitable for most private individuals. The referenced investments are speculative and include a high level of risk, and investors may not receive back the original amount of money that they invested.  The value of investments can fall as well as rise, and you may get back less than what you originally invested. Where an investment is made in overseas currencies, changes in currency exchange rates may affect the value of your investment. Investments in emerging markets can be more volatile than in other more developed markets.  Past performance is no guarantee of future performance, and the value of investments can go down as well as up. Please consult your financial and tax advisers if you are considering investing in any of the referenced investments. This document may contain certain forward-looking statements with respect to Verno’s strategies or expectations. Forward-looking statements speak only as of the date they are made, and Verno assumes no duty to, and does not undertake to, update such forward-looking statements. This document may not be reproduced, distributed, transmitted, displayed, published or broadcast by any recipient for any purpose without the prior consent of Verno Investment Management Limited. This has been issued by Verno Investment Management Limited.  Verno Capital UK LLP, an affiliate of Verno Investment Management Limited, is authorised and regulated by the UK Financial Conduct Authority; Firm Reference Number 686230.  Verno Capital (Middle East) Limited, an affiliate of Verno Investment Management Limited, is regulated by the ADGM Financial Services Regulatory Authority.

 

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