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MIFID II

New rules will come into force on the 3rd January 2018 and will affect anyone engaged in the dealing and processing of financial instruments within the European Union.
On the 3rd of January 2018 MiFID II will be implemented in the EU/EEA. The purpose of this overview is to provide guidance on how Clarksons Platou Securities AS (CPS) will implement 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 will be 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 will be 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 will be 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.

Cost transparency
CPS can assist institutional clients covered by the new rules regarding unbundling of research in various ways. For more specified information, please contact your broker at 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.

If you have any questions, please contact your contact person or compliance. Please reply to cpslei@clarksons.com with your LEI(s) before 1 December 2017.

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