Commercial Policy - SI
This policy governs how DNB Markets will fulfill its obligations as an Systematic Internaliser in secondary markets.
DNB Markets acts as a Systematic Internaliser (“SI”) and deals on own account executing client orders outside regulated markets.
1. What is a Systematic Internaliser (SI)
A Systematic Internaliser (“SI”) is an investment firm which, on an organised, frequent systematic and substantial basis, deals on own account when executing client orders outside a regulated market, a multilateral trading facility or an organised trading facility without operating a multilateral system.
An SI will always have the obligation to report trades to an Approved Publication Arrangement (“APA”) when trading with clients which are not an SI
2. General - DNB Markets as SI
DNB Markets (“DNB”), which is a business area within DNB Bank ASA, will be an SI in the instruments specified in item 3 and will be trading under the MIC code XDNB.
DNB will act as an SI during the normal opening hours for the given product. The table below describes what are to be considered normal opening hours for each asset class.
- Equities and equity like instruments
- Bonds - all classes
- Interest rate derivatives
- Currency derivatives
Trading hours (monday - friday):
- Equities: 0900-1730 CET
- Bonds: 0900-1600 CET
- IR derivatives: 0900-1600 CET
- Currency derivatives: 0800-1700 CET
This policy will be updated regularly and at least once a year. An updated version will be available on this page.
Questions regarding this document and DNB’s SI status can be directed to DNB Markets on e-mail.
3. Instruments covered by this policy
This policy document governs how DNB will fulfill its obligations as an SI in secondary markets transactions for equities, bonds, FX derivatives, interest rate derivatives and equity derivatives.
For the product classes listed in the table below, DNB will make public firm quotes in liquid financial instruments that are traded on a trading venue (ToTV), in derivatives where the underlying is ToTV, and for derivatives that are ToTV where the transaction has been traded OTC.
For illiquid instruments DNB will disclose quotes upon request.
For equity instruments, quotes are valid for transaction sizes below the Standard Market Size (SMS) threshold, and the instrument in question must be deemed liquid.
Quotes in non-equity instruments are valid for transaction sizes below the Size Specific to Instrument (SSTI) thresholds, and the instrument in question must be considered liquid. Furthermore, the following two conditions must be fulfilled:
- DNB is requested for a quote by a customer
- DNB agrees to provide a quote
DNB will be SI in the classes of instruments listed on page two in the document (PDF) below:
4. Publication of firm quotes in liquid instruments
Quotes in equities for which DNB is an SI will be published on Cboe standard market data feed.
Quotes in bonds for which there is a liquid market and DNB is an SI will be published either on Oslo Stock Exchange’s or Bloomberg’s APAs.
Quotes in liquid interest rate derivatives for which DNB is an SI will be made public on Bloomberg’s APA.
DNB will publish the quotes free of charge, but the connection to Bloomberg APA and Oslo Stock Exchange will be governed by their pricing policies.
Minimum quote sizes will be at least the equivalent of 10% of standard market size/size specific to the instrument. Each client can only trade once on a published price.
DNB holds the right to update quotes at any time and can also withdraw the quote under exceptional market conditions.
The quote can also be improved within a public range close to market conditions.
Quotes in liquid interest rate derivatives will be published as a clearable price. Clients who cannot clear the product must contact DNB for their instrument-specific credit charge before they can trade on the quote. The price will be tradeable for 10 seconds after publication or from last update. DNB holds the right to update the price at any time.
5 Disclosure of quotes on request
In illiquid instruments ToTV for which DNB is an SI and DNB has provided a quote, DNB will disclose quotes upon request, except for:
- Quotes that are large in scale (LIS) compared with normal market size and orders held in an order management facility of the trading venue pending disclosure
- Actionable indications of interest in Request for Quote (RFQ) and voice trading systems that are above a size specific to the financial instrument, which would expose DNB to undue risk (and takes into account whether the relevant market participants are retail or wholesale investors)
- Derivatives which are not subject to the trading obligation specified in Article 28 of MiFIR, and other financial instruments for which there is not a liquid market
6. Who can gain access to quotes
DNB holds the right to publish quotes to existing clients only. This means that clients must have gone through a Know Your Customer-process and signed a client agreement and the necessary agreements for relevant product classes.
6.1 Access to quotes in equities
DNB will in order to limit the risk of exposure to multiple transactions from the same client, in a non-discriminatory way restrict the number of transactions from the same client at the published conditions.
Public quotes are available through standard data market feeds.
6.2 Access to quotes in bonds For quotes in bonds
DNB cannot trade in sizes above the original request. If the requesting client decides to trade in a smaller size, clients within the same tier-group will be given access to trade on the quote in a size calculated as the difference between the quoted size and the dealt size.
6.3 Access to quotes in derivatives
For indicative quotes in bonds, DNB cannot trade in sizes above the original request. If the requesting client decides to trade in a smaller size, clients within the same tier-group will be given access to trade on the quote in a size calculated as the difference between the quoted size and the dealt size.