GRM best execution policy

Global Reach Markets Limited (“GRM”) is authorised by the Financial Conduct Authority to provide foreign exchange (“FX”) hedging products to corporates and, occasionally, private clients across Europe.

As the products we sell are relatively specialised, they are classified as contractually-based investment products and are therefore subject to the regulations set out in the second Markets in Financial Instruments Directive (“MiFID II”).

Among these regulations is an obligation that we execute orders on terms most favourable to our clients. This policy statement explains how we fulfil our responsibility to you in this regard.

1. FX Products

Whilst a wide range of FX services is available across Global Reach Group, GRM provides the following three specific classes of contractually-based investment products: -

Structured FX Options – nuanced contracts which are constructed to meet a client’s FX hedging requirements, whilst simultaneously recognising the client’s appetite to participate in future, positive market movements, but at the risk of incurring increased exposure to negative market movements;

Non-Deliverable Forward contracts – contracts for the difference between

  • an exchange rate for a specific currency pair agreed at the start of a contract; and
  • the actual spot rate for a specific currency pair at maturity of the contract; and

MiFID Forwards - agreements to exchange a specific amount of one currency for a specific amount of another at a future date, in order to hedge an internal FX exposure.

2. Mode of Operation

We operate a matched principal broker model, in which we contract directly with you and then cover off the exposure created by our contract through a similar trade that we execute with a GRM liquidity provider.

Our commercial priority is to find a hedging solution that is most suitable to your particular circumstances (including your own commercial objectives and appetite for risk). Our best execution obligation is to achieve the best possible outcome for you, as we do so.

3. Execution Factors

In assessing what is the best possible outcome, we are required to consider all aspects of service execution including cost, price, speed, settlement size and likelihood of execution.

As all our chosen liquidity providers are EEA banks or investment firms with the scale to deliver a highquality service, the standard of delivery is consistent across all providers. Consequently, there is no operational benefit in selecting one provider over another. Therefore, the key criterion by which we determine the best outcome for you is the price of the products that we provide.

4. Global Reach Commitment

Given the bespoke nature of FX hedging solutions, their prices are inextricably linked to the particular circumstances of each trade. Global Reach pricing is driven by our assessment of the costs of its economic model, notably the costs of setting up the sales and monitoring processes, but also including the cost of hedging the transaction or the use of its capital for this transaction, including the cost of credit risk.

Subject to our assessment of these considerations, we commit to providing you with FX hedging solutions which meet your needs and circumstances, and which are priced competitively with any similar products sold elsewhere in the market.

5. Consent

The MiFID II rules require your consent to our Best Execution Policy – we understand that, by the act of agreeing to trade with us, you are effectively affirming your consent to it. Alternatively, should you have any questions about it then please contact us at [email protected].

6. Review

As with all of our compliance procedures, we keep our Best Execution Policy under constant review, including the standards of delivery received from our liquidity providers and the criteria employed in our pricing model.

Our policies are also available in PDF format, please email [email protected] to request the one you’d like.