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  • Aggregation and Allocation

    • BC-8.9.12

      Conventional bank licensees may only aggregate an order for a customer with an order for other customers, or with an order for its own account, where:

      (a) It is unlikely that the aggregation will disadvantage the customers whose orders have been aggregated; and
      (b) It has disclosed to each customer concerned in writing that it may aggregate orders, where these work to the customer’s advantage.

      Added: April 2008

    • BC-8.9.13

      If a conventional bank licensee has aggregated orders of customers, it must make a record of the intended basis of allocation and the identity of each customer before the order is effected (subject to the "best execution" provisions of Paragraph BC-8.9.2).

      Amended: January 2011
      Added: April 2008

    • BC-8.9.14

      Where an allocation takes place, prices must not be changed. The order must be allocated equally so that no customer or broker is advantaged over any change.

      Amended: April 2013
      Added: April 2008

    • BC-8.9.15

      Conventional bank licensees must have written policies on aggregation and allocation which are consistently applied; these must include the policy that will be adopted when only part of the aggregated order has been filled.

      Added: April 2008

    • BC-8.9.16

      Where a conventional bank licensee has aggregated a customer order with an order for other customers or with an order for its own account, and part or all of the aggregated order has been filled, it must:

      (a) Promptly allocate the financial instruments concerned;
      (b) Allocate the financial instruments in accordance with its stated policy;
      (c) Ensure the allocation is done fairly and uniformly by not giving undue preference to itself or to any of those for whom it dealt;
      (d) Give priority to satisfying customer orders where the aggregation order combines a customer order and an own account order, if the aggregate total of all orders cannot be satisfied, unless it can demonstrate on reasonable grounds that without its own participation it would not have been able to execute those orders on such favourable terms, or at all; and
      (e) Make and maintain a record of:
      (i) The date and time of the allocation;
      (ii) The relevant financial instruments;
      (iii) The identity of each customer concerned;
      (iv) The amount allocated to each customer and to the conventional bank licensee; and
      (v) The price of each financial instrument and allocation.
      Amended: April 2013
      Added: April 2008