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  • Aggregation and Allocation

    • BC-2.7.12

      Investment firm licensees may only aggregate an order for a client with an order for other clients, or with an order for its own account, where:

      (a) It is unlikely that the aggregation will disadvantage the clients whose orders have been aggregated; and
      (b) It has disclosed to each client concerned in writing that it may aggregate orders, where these work to the client's advantage.
      Amended: January 2007

    • BC-2.7.13

      If an investment firm licensee has aggregated orders of clients, it must make a record of the intended basis of allocation and the identity of each client before the order is effected.

    • BC-2.7.14

      Where an allocation takes place, prices must not be marked up or marked down, so that no customer, broker or the investment firm licensee is advantaged over any change.

      Amended: July 2013

    • BC-2.7.15

      Investment firm 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.

    • BC-2.7.16

      Where an investment firm licensee has aggregated a client order with an order for other clients 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 client orders where the aggregation order combines a client 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 client concerned;
      (iv) The amount allocated to each client and to the investment firm licensee; and
      (v) The price of each financial instrument and allocation.
      Amended: July 2013
      Amended: January 2007