1. Preamble

1.1. This document is prepared and published in accordance with the Investment Services Act (the Act) and any subsidiary legislation or regulations enacted under the Act. The policy was updated with a view of the requirements under Article 27 of the MiFID II Directive and MFSA conduct of business requirements.

1.2. This policy is not intended to create third party rights or duties or form part of any contractual agreement between the firm and any client or potential client.

1.3. This policy may be reviewed and amended at any time.

2. Purpose

2.1. The best execution policy and procedures form an integral part of our commitment to provide a high standard of service to our clients on a long term basis. This best execution policy explains the methods adopted by the company to achieve its objectives and to comply with the current rules and regulations applicable on an ongoing basis.

3. Policy

3.1. The company has adopted execution arrangements designed to obtain the best possible results for the client in the execution or reception and transmission of a client’s order.

4. Scope

4.1. Best execution requirements generally apply when contractual obligations between the client and the company exist.

4.2. When the company executes orders directly, compliance with best execution shall be ensured by the company itself. When the company uses the services of another entity for the execution of orders, and merely conducts business relating to reception and transmission of orders, the company shall ensure best execution by identifying the entity which is in a position to ensure on an ongoing basis the best possible result for the client in relation to the investment being traded.

4.3. When the company receives specific instructions, either relating to an order or a particular aspect of an order, the company will transmit the order for execution in accordance with those instructions and the best execution policy will not apply for the aspect affected by the instructions received. The client will eventually be warned that the best possible result for the execution of those orders is not guaranteed.

4.4. Best execution requirements apply to retail clients as well as professional clients. The company may, upon being so requested by an eligible counterparty, agree to afford a degree of protection to such eligible counterparty either generally or in respect of one or more particular transaction. The agreement between the company and an eligible counterparty to provide best execution does not arise out of any regulatory obligation in that regard, nor does it amount to an agreement to treat such clients as professional or retail clients.

5. Execution methods

5.1. An order may be executed using the following methods:

  • Execution on a Regulated Market, Multilateral Trading Facility or Organised Trading Facility or a correspondent broker with whom JMFA may have reached an agreement to execute an order on the above captioned venues.
  • Execution through systematic internalisers or market-makers or a correspondent broker with whom JMFA may have reached an agreement to execute an order on the above captioned venues.
  • Execution for collective investment schemes in line with the relative scheme’s prospectus.

6. Procedure

6.1. The company shall take all reasonable steps to obtain, when executing client orders, the best possible result for clients taking into account the following factors:

  • Price;
  • Costs;
  • Speed;
  • Likelihood of Execution and Settlement;
  • Size;
  • Nature;
  • Any other consideration relevant to the execution of a client order.

6.2. The relative importance of these factors shall be determined according to the following criteria:

  • client’s characteristics, in particular classification as a retail or professional client (in regard to a retail clients the best possible result shall be determined in terms of the total consideration)
  • characteristics of the client’s order;
  • characteristics of the financial instruments forming the order; and,
  • characteristics of the execution venues to which the order may be directed.

6.3. In taking all sufficient steps, the company shall strive to achieve the best balance across a range of sometimes conflicting factors. This does not mean achieving the best price for every client’s order, but rather the best possible result that the company can reasonably be expected to achieve considering the resources available to it.

6.4. The company’s commitment to provide clients with best execution do not mean that the company owes clients any fiduciary or other duties in addition to the specific regulatory obligations placed upon the company or as may be otherwise contracted between the company and the client.

6.5. When the company is merely conducting business relating to the transmission and reception of orders, it is not bound to obtain the client’s consent to the best execution policy. Without prejudice to the above the company shall furnish the client with information about its best execution policy, and may obtain clients’ consent to the best execution policy through endorsement in writing, electronic signature, by a click on a web page, verbally by a recorded telephone confirmation, or tacitly inferred from the fact that the client does not object to the company’s best execution policy information furnished to such client. The company shall inform clients of any material changes in its execution policy and arrangements policy.

6.6. When executing orders, the company shall allocate/aggregate transaction in line with its order allocation policy

6.7. The company shall be able to demonstrate, upon client’s request, that any orders made were executed in conformity with the company’s best execution policy and procedure.

6.8. Transmission of Orders to Other Entities (Intermediaries and Principals)

6.8.1. The company’s best execution policy and procedures includes, for each financial instrument in which it receives and transmits orders for execution on your behalf, those Principals and Intermediaries which enable the company to obtain on a consistent basis best execution for client’s orders.

6.8.2. The company may also consider appropriate and in satisfaction of best execution requirements to direct orders through one intermediary. Notwithstanding the company shall monitor and be in a position to compare the quality of the services being provided, in particular as regards the efficiency of order execution in terms of obtaining on a consistent basis the best possible result for the client, and where necessary address any deficiency.

6.8.3. In relation to certain financial instruments, there may be only one possible execution venue available to the company, in which case in executing an order on your behalf in such circumstances it will be assumed that the company has achieved best execution. The Principals and Intermediaries with whom the company deals are themselves bound by best execution requirements for obtaining the best possible result for their clients.

7. Execution Venues

7.1. Execution venue used

7.1.1. The firm currently uses the following execution venues:

  • Malta Stock Exchange
  • Saxo Bank
  • Bank of Valletta plc

7.1.2. Reporting requirements In line with MiFID II requirements, especially RTS 28 requirements, JMFA will be reporting the top 5 execution venues in terms of trading volumes where they executed client orders in the preceding years and on the quality of execution. This document may be accessed through the company’s website.

7.1.3. The information which will be reported in RTS 28 Report includes the following:

  • class of financial instruments;
  • venue name and identifier;
  • volume of client orders executed on that execution venue expressed as a percentage of total executed volume;
  • number of client orders executed on that execution venue expressed as a percentage of total executed orders;
  • percentage of the executed orders referred to in point (d) that were passive and aggressive orders;
  • percentage of orders referred to in point (d) that were directed orders; and,
  • confirmation of whether it has executed an average of less than one trade per business day in the previous year in that class of financial instruments.

The publication will include an analysis and conclusions drawn from our monitoring of execution quality obtained during the preceding year.

8. Obtaining Consent

8.1. The company or any of its Principals and Intermediaries may execute orders on behalf of clients outside a regulated market or a multilateral trading facility, in which case express clients’ consent shall be obtained prior to execution of orders outside such regulated market or a multilateral trading facility. Such consent may be obtained either generally or in respect of a particular transaction or group of transactions.

9. Policy and process review

9.1. The company shall monitor its best execution policy and in particular the ranking of factors on an ongoing basis, and review such policy whenever a material change occurs. The Compliance Officer shall review best execution policy and procedure, and order execution arrangements at least annually.

Version: April 2019