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MIFID II

New rules came into force on the 3rd January 2018 affecting anyone engaged in the dealing and processing of financial instruments within the European Union.
On the 3rd of January 2018 MiFID II was implemented in the EU/EEA. The purpose of this overview is to provide guidance on how Clarksons Platou Securities AS (CPS) has implemented key parts of the new regulations.

As the MiFID II rule-making process continues, more information will be available on this page and it will be continuously updated. 

KEY AREAS OF MIFID II

Market Structure and trading obligation
Certain trading activity conducted outside of regulated trading venues are required to move onto a regulated trading venue. Trading obligations will apply to both equity and non-equity instruments. For equity trading, CPS must ensure the transactions take place on a regulated market, a multilateral trading facility (“MTF”), an organised trading facility (“OTF”), with a systematic internaliser (“SI”) or on an equivalent third-country trading venue. For non-equity trading, certain Interest Rate Swaps will also be required to be executed through trading venues by certain investment firms.

CPS is an agency broker. We do not execute client orders against our own book in any systematic way. Consequently, CPS is not to be considered an execution venue and has not applied for SI status.

Transparency
Pre and post-trade transparency requirements have been extended beyond equity to include other asset classes such as bonds, derivatives and electronically-traded funds.

Execution Quality
CPS is required to disclose on an annual basis its five largest execution venues (in terms of trading volume). On a quarterly basis, execution quality data pursuant to the relevant instrument will be published at each execution venue's website.

Transaction Reporting
CPS is required to report additional data in conjunction with the transaction reporting. The additional data fields will include client and transactional identifiers on a wider scope of products. CPS will report to the Norwegian national competent authority and financial regulator.

Short-sales
The new transaction reporting regulations introduces a requirement on firms to indicate where a transaction is a short sale. This is relevant for trades in shares admitted to trading on a trading venue. Please also note that new regulations for reporting of short positions came into force in Norway on 1 January 2017, which require clients to report any short positions in listed or regulated markets to the Norwegian Financial Supervisory Authority. Reference is made to “Reporting of Short Positions” which can be found here

Cost transparency
Portfolio managers and advisers are subject to new rules for receiving inducements. Previous market practice has been to supply research to all customers as part of CPS’ trading and brokerage services. MiFID II has required research to be priced separately from execution of trades and as a consequence CPS’ research is no longer distributed widely. For more specified information, please contact your broker with CPS. 


Legal Entity Identifier (“LEI”)
LEI is a 20-character alphanumeric code assigned to uniquely identify a legal entity that is a counterparty to a financial transaction. LEI must be obtained from an authorized LEI issuer. If your entity conducts securities transactions with institutions within the EU/EEA an LEI has to be registered regardless of where the entity is based. The LEI is a tool for the institutions transactions reporting. LEI is required for all companies, funds and other separate legal entities trading with CPS.
You can acquire LEI from: 
NordLEI (www.nordlei.org) (Global Issuer) 
The full list of LEI issuing organizations can be found here.

Clarksons Platou Securities AS:  5967007LIEEXZXA40G44
Clarksons Platou Securities, Inc.: 549300ED05S7MWQ8U215

National Client Identifier (NCI)
According to MiFID II natural persons must identify themselves in a structured way, with the so called National Client Identifier. The European Securities Market Authority has assembled a list of which numbers should be used for citizens of different countries. For Norwegians citizens that is the 11 digit personal ID (fødselsnummer).

Revised policies and agreements
MiFID II has changed our working relationship and as a consequence we have updated agreements, terms and conditions. You should carefully review all the information that is relevant for your business with CPS which can be found on our web page under “Compliance”.

If you have any questions, please contact your contact person or compliance.