Delivering Best Execution
for our clients
- Price: We will usually assume that best price is the most important outcome
- Size: Small, liquid orders are usually dealt via RSP. Large or illiquid orders are dealt using our dealers’ expertise
- Order type: ‘At best’ orders are usually dealt via RSP, ‘Limit’ orders are usually published on LSE SETs. If you have specific directions, we will deal according to your instructions
- Speed: Although achieving the best price is key, sometimes being able to deal immediately may be more important to you
- Likelihood of settlement: Making sure we choose an appropriate counterparty that can deal with the specific type of order
- Characteristics of the Client : Priorities may be different for Retail or Professional clients, although generally we apply the same policy to both
- Characteristics of the Order: The size of the order in relation to liquidity, any specific client instructions on execution, or whether a limit has been set
- Characteristics of the investment: Liquidity, spread, and volatility may mean Speed is prioritised over price, or that another factor takes precedence
- Characteristics of the Counterparty: Some venues Counterparties specialise in particular investment types, e.g. equities or fixed income, and this may influence our decision
- Directly on a Regulated Market of which we are a member, e.g. the London Stock Exchange; or
- With third party investment firms (referred to as Counterparties and/or Market Makers); or
- Outside a Regulated Market on rare occasions and where we have obtained your prior express consent.
The Venue which we are most likely to use to execute client orders at normal market size in exchange traded investments such as equities, ETFs, investment trusts, and bonds; is the London Stock Exchange (LSE). Whilst a number of new exchanges now exist, analysis of our trade data shows that the LSE has consistently allowed us to obtain the best possible result for the execution of our client orders, when taking account of the factors mentioned above.
All Counterparties that we choose to transact with are vetted by the Custodian (our clearing, settlement and custody provider), before any orders can be placed with them. The vetting process looks at their financial position, regulatory status and any negative news. This is reviewed on an ongoing basis to ensure as far as possible that they will be able to fulfil and complete any orders we place with them, and an up to date list of ‘approved venues’ is maintained.
Execution of orders by our Custodian's Dealers
Execution of Fixed Income orders
Execution of Collective Investments (Funds)
Orders in Collective Investments, such as Unit Trust and OEICs, will be transmitted to our Custodian’s Dealers and executed in accordance with and our acceptance of our Custodian’s best execution policy. When placing instructions in these types of instruments, our Custodian’s Dealers will either utilise a platform where multiple providers make their products available, or will transact with the provider direct, depending on the specific requirements of the product itself. A copy of our Custodian’s order execution policy is available on request.
Trading outside a Regulated Market/ MTF
Monitoring and Review
Get in touch
ECounterparties on which we place most reliance
- At Best. An order to buy or sell an investment at the best price available in the market at that time is commonly known as an ‘at best’ order.
- Counterparty. A counterparty in this context is who Killik & Co transacts with in the execution of an order. A counterparty can also be a ‘Market Maker’ if their business is the generation of market order flow. The ultimate end counterparty to a transaction is also referred to as the ‘execution venue’.
- Directed Order. Where you give a specific instruction in relation to the way you would like your order executed, this is known as a ‘directed’ order.
- Limit Order. A Limit Order is an order to buy (buy limit) or sell (sell limit) at a specified price or better.
- LSE ORB. ORB is the London Stock Exchange’s electronic order book for UK Retail Bonds, including UK Corporate Bonds, UK Supranational Bonds and UK Gilts. Market participants are able to place buy and sell that are organised and displayed by price and size.
- Multilateral Trading Facility (MTF). An MTF is a multilateral system, operated by an investment firm or market operator, which brings together multiple third-party buying and selling interests in Financial Instruments.
- OEIC. An open-ended investment company (OEIC) is a type of company or fund, structured to invest in other companies.
- Order. An order is an instruction from you to buy or sell an investment. The order is ‘dealt’ by Killik & Co by either executing or transmitting to a third party for execution.
- Over The Counter (OTC). An over the counter (OTC) trade is on that is done directly between two parties, off-exchange.
- Professional Client. A Professional client is a broader term used to describe a client who is categorised either as a ‘per se professional client’ or an ‘elective professional’ client in accordance with FCA COBS rules.
- Regulated Market (RM). An RM is a multilateral system operated and/or managed by a market operator, which brings together or facilitates the bringing together of multiple third-party buying and selling interests in financial instruments in a way that results in a contract, in respect of the financial instruments admitted to trading under its rules and/or systems.
- Retail Service Provider (RSP). The RSP is an electronic trading platform provided by your Custodian, which our Investment Managers (and Dealers) are given access to. The RSP polls quotes from a number of ‘Market Makers’ (consisting of Venues and Counterparties or ‘liquidity providers’, which our Custodian has chosen to connect to based on competitive pricing and financial stability) for the best price currently available in the quantity required.
- The Stock Exchange Electronic Trading Service (SETS). SETS is the London Stock Exchange’s electronic order book where market participants are able to place buy and sell orders for a specific security that are organised and displayed by price and size.
- Touch Price. The touch price is a term used to describe the highest bid price or lowest offer price available. The difference between the lowest (offer) and highest (bidding) price is known as the ‘bid-offer spread’.