Introduction and Scope

The purpose of this policy is to establish a clear set of guidelines with regards to how we act when executing Client trades and orders in “financial products” as defined in Section 1(1) of the Financial Advisory and Intermediary Services Act, 2002 (Act No.37 of 2002).

We at Unum is committed to treating its customers fairly (TCF) and when executing orders on your behalf in relation to financial instruments, will take reasonable steps to achieve what is called “best execution” of your orders.

This means that we will have in place a policy and procedures which is designed to obtain the best possible result for our clients, when executing client orders or when placing orders with, or transmitting orders to a Financial Product Provider, Exchange,  or to other entities to execute, taking into account: price, costs, speed, likelihood of execution and settlement, size, nature, market timing, market status, market volatility and/or any other relevant order execution consideration.

In our dealings, we have a general duty to act honestly, fairly and professionally taking into account the Client’s best interest.

Types of Orders

Market order – is an order to buy or sell a stock at the best available price. Generally, this type of order will be executed immediately. However, the price at which a market order will be executed is not guaranteed.

Limit order – allows traders and investors to specify the price that they are willing to pay for a security. By using a buy limit order, the Client is guaranteed to pay that price or better, meaning that he or she will pay the specified price or less for the purchase of the security.

Stop order – is an order to buy or sell a security when its price surpasses a particular point, thus ensuring a greater probability of achieving a predetermined entry or exit price, limiting the investor’s loss or locking in his or her profit.

Trailing stop order – is a special type of trade order where the stop-loss price is not set at a single, absolute dollar amount, but instead is set at a certain percentage or a certain dollar amount below the market price.

Contingent orders – an Order which will only be active once the original Order has been executed.

Algorithmic order – a trading system that utilizes very advanced mathematical models for making transaction decisions.

Depending on the trading platform and the Financial Product Provider utilized to execute the Client’s orders, not all order types may be available.

Order Handling

Trading and order execution is available between designated hours, this is typically available in the trading platforms terms and conditions or the Financial Product Providers website. Between these hours, clients may place trades and orders over the phone, email and on the online trading platform.

Orders will not be monitored or executed outside of our trading hours for that market. For underlying instruments which continue to trade outside our hours, the price at which the order may be executed on resumption of trading may be substantially different to the specified order price.

Execution Factors

Our policy is based on offering the best possible outcome for you based upon the following main criteria:

Price (this is assigned the highest degree of importance) refers to the resulting price of the transaction. Prices shown on the trading platform are based on the prevailing market prices of the relevant underlying instrument that we receive from the exchange and/or our liquidity providers/prime brokers.

Speed of execution  – There are various factors which may impact the speed of execution:

Size of order – depending on the liquidity in the underlying market, execution or large orders may take substantial time.

Platform / connectivity latency – any delay experienced in inputting orders on the platform and/or with the Financial Product Provider’s price quotes

Type instrument – depending on the security selected, for example Small Cap shares, we may experience fairly low trading volumes which may affect our ability to execute the trade

Likelihood of Execution – ability to fill your order, or at least a substantial part of it, in its entirety.

Market volatility – in extreme, volatile markets we may experience “gap” risk

Slippage

It is important to note that we cannot guarantee the execution price of orders. We endeavor to execute orders at or very close to the specific order price. Due to price movements in the underlying, it is possible that the price may move quickly and erratically from one level to another. This is known as gapping and can arise in periods of low liquidity and high volatility (such as after trading updates or immediately after the release of economic data).

Liquidation

There are some circumstances where an open position(s) on your account may be closed without instruction from you, for example, positions will be closed automatically when the Equity / Margin ratio of your account reaches the predetermined minimum/liquidation level.