NEXTARTFX Execution Policy NEXTARTFX
1. execution policy
The financial trading services offered by NEXTARTFX are provided by NEXTART CO.,LTD.
2. Obligation of Execution
We have a fiduciary duty to our clients to obtain the best execution of brokerage transactions. Failure by the Company to fulfill its obligation to obtain best execution for its clients could have significant regulatory consequences. Our policy is modeled after the guidelines articulated by regulators. In particular, we believe that best execution is, to a significant degree, a qualitative concept. In determining what constitutes best execution, the determining factor is not the lowest possible fee, but whether the transaction is qualitatively best executed. In making this determination, our policy is to consider the full range of broker services, including, but not limited to, the value of research provided, execution power, commission rates, financial responsibility, management resources, and responsiveness.
Broker Execution: All trades are executed electronically, fully regulated and transparent
2.1. execution of trades
How do we ensure the best execution of your trades?
All trades are executed with our main liquidity bank using market execution with no re-quotes, no dealing desk or human intervention, and no trade limits.
Our liquidity providers
Our client base in the OTC market, as appropriate.
Multilateral trading facilities operated by third parties
When selecting an institution/location to trade, we will take reasonable steps to ensure that the selected institution will produce the best trading results for our clients, taking into account the following factors
In the markets in which we operate, we may only offer you prices that have been notified to us.
We will provide you with details of all tradable bids and offers (subject to the other matters referred to below through the platform).
Temporal validity of prices - In many markets, there are lulls and spikes in trading as negotiations adjust the gains of trades at different times of the day and on different parts of the curve. Therefore, the "last traded" price is not always available and may not serve as a reliable indicator of current prices.
We cannot permit you to trade in the market unless we are reasonably satisfied that you have the ability (through an agent or otherwise) to settle the relevant transaction.
Fees may vary for each client depending on the nature of the contract and the level of activity.
2.2. Trade Errors
Trade errors occur when we deviate from the general trading practices involved in trading and settling transactions for your account. Part of our fiduciary duty is to identify and respond to these errors as soon as we discover them. We also recognize the following as trade errors
A sale being executed as a buy
Over- or under-allocation of securities, i.e., a frame is placed in the wrong place or a zero is added (1,000 becomes 10, 000)
Incorrect ticket symbol (C instead of S)
A transaction is executed with an incorrect account number
A buy or sell order not executed
Incorrect allocation of block trades
Customer's account does not have the funds to settle the trade
A purchase or sale of a security is made in violation of the customer's investment profile or guidelines
A purchase or sale of securities for a non-discretionary client was executed before or without the client's consent or without proper written authorization
The following types of errors are not considered trade errors as defined by your RIA
Erroneous trades that are discovered prior to settlement and do not negatively impact the customer
Improperly documented/recorded trades
Rewriting a ticket that describes or corrects an improperly executed trade
Errors made by unrelated third parties (broker/dealers, custodians, etc.), noting, however, that as a fiduciary, you are responsible for reviewing the trade and ensuring that any third party errors are resolved favorably.
It is our policy that clients are not responsible for trade errors. If we are responsible, we will correct the error on the same day whenever possible. If a third party is responsible, we will oversee its resolution. Any loss will be reimbursed to you in the form of a statement credit or check written by us if the custodian or broker/dealer does not cover it in de minimis.
All trade errors must be reported to the Compliance Officer ("CO") in a timely manner as they are discovered; the CO must document when the trade error occurred and whether the firm is responsible.
If responsible, the firm must ensure that the error is corrected immediately in accordance with the fiduciary standard of acting in the best interest of the customer. If a loss is incurred by the client, the firm must reimburse the client for the full amount of the loss, including the return of any trading commissions. If an error is made and a profit is made, the
We may elect for the customer to retain the profit
The broker/dealer custodian may retain the profit.
In accordance with our accounting standards, it is best practice to hold profits in our trade error account and donate them annually to charity.
All payments to clients will be properly documented.
2.3. Trade Error Files
The firm will keep a trade error log. All trade errors will be properly documented and maintained by the CO.
2.4. Market Execution
Market execution is the execution of orders at the best available price directly in the marketplace where banks and financial institutions worldwide act as liquidity providers. Orders are executed without manipulation or intervention by the dealing desk. Market orders are executed on a "fill or kill" basis, without re-quotes. Using state-of-the-art broker technology, traders experience low latency, fast execution, and accurate order fill, which is beneficial for high frequency traders and scalpers.
2.5. use of latency reduction technology
While fast order execution is important for accurate order fulfillment, latency can cause delays that result in orders being executed at the next available price (slippage) NEXTARTFX tackles latency head-on and uses a high-speed platform to provide all traders with superior, fast, low-latency order execution.
However, due to normal delays in the market, orders may be executed at the next available price (slippage). Although slippage is often referred to as a negative, it can actually be a positive for the trader because the best execution policy improves the price.
When an order is about to be closed or a stop loss/take profit is about to be filled, rapid market movements may prevent the price to be filled from trading in the market (it has already passed or did not exist in the market), and the order will be executed at the next available price. Slippage is more likely to occur in volatile market environments where market prices change rapidly.
To improve execution speed and reduce slippage, NEXTARTFX offers free virtual private server (VPS) hosting to allow clients to trade quickly and efficiently.
2.7. Trading Strategies
Pre- and post-trade transparency is an important component of all trading strategies, and all clients should evaluate their broker's conflicts of interest, transparency, terms and conditions, and execution philosophy/execution. NEXTARTFX offers high frequency trading, profitable expert advisors, and 2.7. support specialist strategies by providing transparent and profitable trading rules such as no minimum market distance limits, core spreads, and minimum market increments to provide the best environment for clients to trade successfully.
2.8. Trade Monitoring
NEXTARTFX will implement a robust trade monitoring system. Our system and trade compliance monitoring process allows us to monitor and detect rogue algorithms in real time, check market operations at the end of the day, and everything in between. Our proven platform and staff of experienced and well-trained dealer teams allow us to combine real-time and historical data to detect suspicious trading patterns on our platform.
The trade monitoring cycle shall be in two phases
The monitoring process, mechanisms, and capabilities are outlined below.
Real-time and post-trade monitoring through trade and order monitoring systems to detect market abuse and inappropriate trading activity
Escalation of suspicious transactions and follow-up investigations
Monitoring of electronic and voice communications to meet regulatory requirements
Conducting ad hoc monitoring reviews (desk-based and thematic reviews) in line with the compliance monitoring plan
Identification of front office training needs highlighted by monitoring and business reviews
Support audit visits, investigations and regulatory inquiries
Assist with ad hoc work, investigations, and projects as needed
Work with all internal control functions to identify monitoring-related issues and to resolve outstanding monitoring, investigations, and other control findings and resolutions
Prepare compliance management information
We monitor our execution regime on an ongoing basis by selecting an appropriate sample of executed orders and evaluating that sample for
pre-defined reports to support investigations and manage operational performance.
To this end, we use a combination of human skills, experience, and technology to proactively monitor trading activity to ensure that our traders comply with all laws, regulations, guidelines, and international best practices.
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