Corporate Governance & Regulatory
Our clients and counterparties may wish to refer to the following policies which address various regulatory matters:
Policies
Conflicts of Interest Summary
Daiwa Capital Markets Europe Limited (Daiwa Europe) is part of the Daiwa Securities Group Inc, an independent full-service securities group providing an extensive range of financial services centred on retail, wholesale and investment banking business and asset management business. Daiwa Securities Group Inc., parent company of Daiwa Europe, is responsible for providing corporate clients and institutional investors with sales & trading and investment banking services.
We continue to recognise that in the normal course of our business, circumstances may arise that could result in our interests conflicting with the interest of, or with the duties we owe to, our clients. These could include conflicts between the interests of Daiwa Europe, or other group companies and our clients, or between the interests of different clients.
Daiwa Europe has always sought to ensure that conflicts are identified and managed at an appropriate level. Procedures have therefore been established to protect the interests of our clients and ensure that all parties are treated fairly and reasonably. In particular, arrangements exist to control the flow and use of non-public, price sensitive information, the execution of client orders, staff’s personal account dealing and their receipt of gifts or other inducements from clients or suppliers.
Where necessary, we segregate the activities of staff working in areas where conflicts of interest may arise. Where we feel that our procedures in themselves may be insufficient to manage the risk we will look to disclose the potential conflict to our client and obtain their agreement to precede. Ultimately we will decline to act where we feel the risks cannot be managed or mitigated. Daiwa Europe may share information regarding investment banking relationships with other group companies. The list of group companies is available on our website.
The risks and associated controls relating to conflicts of interest have been documented internally in the Conflicts of Interest Matrix. This Matrix details the potential conflicts of interest in each department and the controls in place to mitigate these risks. The Conflicts of Interest Matrix is subject to regular review.
Summary of Order Exectuion Policy
Cost and Charges Disclosure Notice
Eligible Counterparty Agreement
Disclosures
Disclosures
The Company's disclosures on capital and risk management are available below. This information will be updated, at a minimum, on an annual basis.
Disclosures for the year ended 31 March 2023
Disclosures for the year ended 31 March 2022
Disclosures for the year ended 31 March 2021
Disclosures for the year ended 31 March 2020
Disclosures for the year ended 31 March 2019
Disclosures for the year ended 31 March 2018
Disclosures for the year ended 31 March 2017
Disclosures for the year ended 31 March 2016
Treasury Markets Practices Group
Treasury Markets Practices Group
Please see below for information about Daiwa Capital Markets Europe Limited's adoption of the Treasury Markets Practices Group's recommendations for US securities fails.
Adoption of Treasury Markets Practices Group's recommendations
UK Credit Research Disclaimer
UK Credit Research disclaimer
This document is produced by Daiwa Securities Co. Ltd and/or its affiliates and is distributed by Daiwa Capital Markets Europe Limited in the European Union, Iceland, Liechtenstein, Norway and Switzerland. Daiwa Capital Markets Europe Limited is authorised and regulated by The Financial Conduct Authority, is a member of the London Stock Exchange and an exchange participant of Eurex. Daiwa Capital Markets Europe Limited and its affiliates may, from time to time, to the extent permitted by law, participate or invest in, or be mandated in respect of, other transactions with the issuer(s) referred to herein, perform services for or solicit business from such issuer(s), and/or have a position or effect transactions in a particular issuer’s securities or options thereof and/or may have acted as an underwriter during the past twelve months in respect of a particular issuer of its securities. In addition, employees of Daiwa Capital Markets Europe Limited and its affiliates may have positions and effect transactions in such securities or options and may serve as Directors of a particular issuer. Daiwa Capital Markets Europe Limited may, to the extent permitted by applicable UK law and other applicable law or regulation, effect transactions in securities of a particular issuer before this material is published to recipients.
This publication is intended for investors who are not Retail Clients in the United Kingdom within the meaning of the Rules of the FCA and should not therefore be distributed to such Retail Clients in the United Kingdom. Should you enter into investment business with Daiwa Capital Markets Europe’s affiliates outside the United Kingdom, we are obliged to advise that the protection afforded by the United Kingdom regulatory system may not apply; in particular, the benefits of the Financial Services Compensation Scheme may not be available.
Daiwa Capital Markets Europe Limited is part of Daiwa Securities Group Inc. Daiwa Securities Group Inc., its subsidiaries or affiliates, or its or their respective directors, officers and employees from time to time have trades as principals, or have positions in, or have other interests in the securities of the company under research including market making activities, derivatives in respect of such securities or may have also performed investment banking and other services for the issuer of such securities. Daiwa Securities Group Inc., its subsidiaries or affiliates do and seek to do business with the company(s) covered in this research report. Therefore, investors should be aware that a conflict of interest may exist.
Daiwa Capital Markets Europe Limited has in place organisational arrangements for the prevention and avoidance of conflicts of interest. Our Conflict Management Policy is available. Regulatory Disclosures of Investment Banking Relationships are available.
The statements in the preceding paragraphs are made as of October 2017.
UK Tax Strategy
Please see below information about Daiwa Capital Markets Limited's UK Tax Strategy.
Allocation Policy
Daiwa Capital Markets Europe Limited (“DCME”) sets outs the Allocation Policy in accordance with the requirements of MiFID II and relevant regulations and for the purpose of effective arrangement to identify, prevent and manage conflicts of interests.
Best Execution RTS 28
These reports have been prepared by Daiwa Capital Market Europe Limited (DCME) for the purposes of meeting DCME’s regulatory obligations under Commission Delegated Regulation (EU) 2017/576 (“MiFID II”).
2020:
Best Execution RTS 28 (Top 5 venues and quality of Execution) Best Efforts report
2019:
Best Execution RTS 28 (Top 5 venues and quality of Execution) Best Efforts report
2018:
Best Execution RTS 28 (Top 5 venues and quality of Execution) Best Efforts report
2017:
Best Execution RTS 28 (Top 5 venues and quality of Execution) Best Efforts report
Quality of Execution RTS 27
Below is information relating to the ‘Quality of Execution’ Obligations as laid out under RTS 27 of under MiFID II. Please select the Quarter/Year you are interested in and download the respective QoE report. Note, it is provided in XLSX format.
Quarter 4, 2020:
T2 RPT
T3 RPT
T4 RPT
T5 RPT
T6 RPT
T9 RPT
Quarter 3, 2020:
T2 RPT
T3 RPT
T4 RPT
T5 RPT
T6 RPT
T9 RPT
Quarter 2, 2020:
T2 RPT
T3 RPT
T4 RPT
T5 RPT
T6 RPT
T9 RPT
Quarter 1, 2020:
T2 RPT
T3 RPT
T4 RPT
T5 RPT
T6 RPT
T9 RPT
Quarter 4, 2019:
T2 RPT
T3 RPT
T4 RPT
T5 RPT
T6 RPT
T9 RPT
Quarter 3, 2019:
T2 RPT
T3 RPT
T4 RPT
T5 RPT
T6 RPT
T9 RPT
Quarter 2, 2019:
T2 RPT
T3 RPT
T4 RPT
T5 RPT
T6 RPT
T9 RPT
Quarter 1, 2019:
T1 RPT
T2 RPT
T3 RPT
T4 RPT
T5 RPT
T6 RPT
T9 RPT
Quarter 4, 2018:
T2 RPT
T3 RPT
T4 RPT
T5 RPT
T6 RPT
T9 RPT
Quarter 3, 2018:
T1 RPT
T2 RPT
T3 RPT
T4 RPT
T5 RPT
T6 RPT
T9 RPT
Quarter 2, 2018:
T1 RPT
T2 RPT
T3 RPT
T4 RPT
T5 RPT
T6 RPT
T9 RPT
Quarter 1, 2018:
T1 RPT
T2 RPT
T3 RPT
T4 RPT
T5 RPT
T6 RPT
T9 RPT
Disclaimer: This report represents Quality Of execution information under RTS 27, incorporating in-scope trades of Daiwa Capital Markets Europe Limited (“DCME”). The information is provided pursuant to Directive 2014/65/EU (MiFID II) and amending Directive Delegated Regulation 2017/576/EU and in accordance with RTS 27 regarding quarterly publication by investment firms of information on quality of execution. These reports do not constitute investment advice, marketing material nor warranties of future provision of best execution on an individual basis.
This report has been compiled on the basis of DCME’s interpretation of applicable regulatory requirements at the time of compilation. DCME’s interpretation may change over time and to the extent these change over time, the methodology used to prepare these reports may correspondingly change. Data used to compile this report may be subject to technical errors and constraints, in particular in respect to earlier reports where issues with respect to newly implemented MiFID II changes may occur. Additional issues may include calculation errors/ anomalies, incomplete reference data elements and instances of over/under inclusion of in-scope trades. On-going enhancements will be made to the reports and the data republished as required.
Accordingly, while DCME has used its best efforts in preparing this report, it does not guarantee the accuracy or completeness of its contents and shall not be liable for any loss or damage caused or suffered through reliance on this report or its contents.
Systematic Internaliser
Background
The recast of Market in Financial Instruments Directive 2014/65/EU (MIFID II) and the Markets in Financial Instruments Regulation 600/2014/EU (MIFIR), collectively require MIFID investment firms trading in financial instruments for which they are Systematic Internaliser (SI) outside a regulated market (RM), Multilateral Trading Facility (MTF) and Organised Trading Facility (OTF), to comply with pre-trade transparency obligation (the SI requirements). The purpose of these obligations is to support efficient price discovery around trading activities taking place off trading venues and to promote a level of playing filed with on-venue trading.
Under MiFID II, a SI is defined as ‘an investment firm which, on an organised, frequent, systematic and substantial basis, deals on its own account when executing client orders outside a RM, an MTF or an OTF without operating a multilateral system’.
Daiwa Capital Market Europe Limited SI
After careful consideration and evaluation, Daiwa Capital Markets Europe Ltd has made the decision to opt out of the Systematic Internaliser (SI) regime based on recent changes in our business strategy, operational considerations and the FCA removing the Post Trade Transparency obligation from the SI regime.
The SI regime currently requires firms acting as Systematic Internalisers to fulfil trade reporting requirements which some clients may rely on for the purposes of meeting their own reporting obligations. With effect from 29th April 2024, the FCA are removing the Post Trade Transparency obligation from the SI regime. As such, from 29th April 2024, clients will assume responsibility for trade reporting in accordance with the applicable regulatory requirements.
If you have any queries, please contact ComplianceAdvisory@uk.daiwacm.com.
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Daiwa Capital Markets Europe Markets Identification Code (MIC) is “DAIW”.
DCME will operate as an SI within its normal trading hours.
Click here to read the SI Commercial Policy.
Fighting Crime
Fighting Crime
Daiwa Capital Markets Europe Limited (“DCME”) is committed to high ethical standards. DCME’s policies on anti-money laundering, sanctions, and anti-bribery and corruption aim to ensure that risks identified by the firm are appropriately mitigated. This is achieved by establishing and implementing appropriate processes, systems and controls to protect DCME, its customers, shareholders, employees, and the communities it serves from money-laundering and other forms of financial crime.
Below is our Wolfsberg Questionnaire. If you have any questions, please reach out to our Financial Crime team.