Our Best Execution Policy describes how we intend to achieve
best outcome for your orders. As your broker, we are required by
ASIC to provide you with an outline of our policy, to ensure you
understand:
1. What we define as best execution,
2. Which trading venues we currently participate in and,
3. How we will go about obtaining best outcome for your orders
in accordance with our policy
Your orders will be automatically handled in accordance with our
Best Execution Policy. It is important to note that there are
no changes to the way you enter an order as a result of our Best
Execution Policy, nor are we expecting this to change in
future.
As we are connected to alternative trading venues such as Chi-X
Australia and ASX Centrepoint , we will continue to automatically
handle your order in accordance with our Best Execution
Policy.
The ASX will now operate a primary trading venue known as
ASX TradeMatch and new trading venues known ASX Centrepoint and ASX
Pure Match where ASX equity trading activity is
conducted. With the introduction of a competitor venue, Chi-X
Australia, equity trading activity for a set of equity securities
may now be conducted on a trading venue other than ASX
TradeMatch.
The introduction of Chi-X Australia effectively creates multiple
markets where a stock can be traded - for example, stocks like BHP,
Telstra and other top 200 stocks may now be traded on both ASX
TradeMatch, ASX Centrepoint, ASX PureMatch and Chi-X
Australia.
As your broker, we are committed to providing you with
access to trading venues that ensure you can achieve the best
outcome for your orders. There is nothing specific you are required
to do to participate in multi-markets, as we expect all orders to
automatically participate in multi-markets once we are connected to
Chi-X Australia and ASX Centrepoint . Once connected to
multiple markets, unless you instruct us otherwise, we will
automatically send your order to the trading venue(s) that will
achieve the best outcome for your order, in accordance with our
Best Execution Policy.
Our Best Execution Policy outlines our considerations in
determining what trading venue(s) your order will be sent to.
We will take reasonable steps to execute your order on the basis of
best total consideration, i.e. the purchase or sale price after
brokerage and GST.
You can download the Best Execution Policy here.
Your order can be executed via different methods including by an
automated order router or by human intervention through a licenced
CommSec trader. Either way, we will always attempt to obtain
the best possible price for your order unless you instruct us
otherwise.
ASX TradeMatch (order book) is the current primary trading and
listing venue for equities trading in Australia. Prior to the
introduction of multi-markets and alternative trading venues (such
as Chi-X Australia), ASX TradeMatch was the primary trading venue
for all equity trading. A subset of securities listed on ASX
TradeMatch may be traded on alternate trading venues. ASX
TradeMatch will be our default trading venue once multi-market
trading is live.
Chi-X Australia is a new trading venue (order book) established
as an alternative to ASX TradeMatch. Chi-X Australia currently
provides trading in a subset of ASX listed securities - the ASX200
securities.
Now that we are connected to the Chi-X Australia trading venue,
we may automatically send all or part of your order to this trading
venue to be executed to ensure you achieve the best outcome
possible, in accordance with our Best Execution
Policy.
ASX PureMatch is an alternative trading venue (order book)
established by the ASX which will provide trading in a subset of
ASX Listed securities. At this point, CommSec will not participate
in the ASX PureMatch venue until we consider there is sufficient
activity/liquidity to trade. CommSec will continue to monitor
ASX PureMatch to ascertain when to participate.
You can find more information on by downloading the Best
Excecution Policy here or call 13 15 19 for
more information.
Chi-X Australia commenced operations
on Monday 31st October 2011, initially trading only a
subset of ASX listed securities (BHP,CSL,LEI,ORG, QBE, WOW, STW,
ISO) and with a small set of foundation market participants
(brokers). Chi-X Australia has increasing the traded stocks to the
top 200 companies and ETFs.
Note: Chi-X Australia does not support ETOs, Warrants or
CFD trading at this stage.
ASX PureMatch launched on 28th November 2011.
At this point in time, CommSec will not participate in the ASX
Pure Match venue until there is sufficient liquidity to
trade.
No. There are no changes to brokerage fees with the introduction
of multi-markets.
NBBO is an acronym for National Best Bid and Offer. The
national best bid price is the highest price that all buyers are
willing to pay for a particular stock, regardless of what trading
venue it is being published on. Similarly, the national best offer
price is the lowest price that all sellers are willing to accept
for a particular stock.
As bids and offers may differ between trading venues, the NBBO
will be used to describe the Best Bid Price and Best Offer Price
across all trading venues. For example, if the Bid/Offer on
ASX TradeMatch is $1.00/$1.02 and the Bid/Offer on Chi-X Australia
is $0.99/$1.01, the Bid/Offer or NBBO will be $1.00/$1.01.
You are typically viewed as a retail client, unless we both
agree you are a wholesale client
A trading venue is defined as a place where buyers and sellers
of securities go to trade. ASX TradeMatch is the current
primary trading venue in Australia. Chi-X Australia, ASX
CentrePoint and ASX PureMatch are alternative trading venues
to ASX TradeMatch, offering trading in a subset of the stocks
listed on ASX TradeMatch.
Best Execution is different from Terms & Conditions
(T&Cs) as the Best Execution Policy is a an explanation from a
broker how it will achieve the best outcome for you, rather than an
agreement between your broker and you. It does not
require you to either acknowledge or consent to it, but simply
states how a participant will endeavour to get the best outcome for
all of your orders.
CommSec is a member of the Australian Securities Exchange (ASX)
and Chi-X Australia and is authorised to participate in the
following venues:
- ASX TradeMatch
- ASX CentrePoint; and
- Chi-X Australia
At this point, CommSec will not participate in the ASX PureMatch
venue but will continue to monitor liquidity levels in PureMatch as
part of its Best Execution review process to determine wither
connection is necessary.
NXXT is a type of "crossing" or "crossed trade" reported to the
ASX by your broker (CommSec) known as NBBO Crossing. It is a
crossing which has occurred at the current NBBO price and has been
reported to the ASX. This type of trade typically occurs when
CommSec has managed to automatically match your order with another
CommSec client order through the CommSec Crossing System. As the
crossing has been reported at a price "at or within" the current
NBBO price, you are not disadvantaged in any way. In fact, your
order may have been executed faster than it would have been if sent
to the public trading venues, or at a price that is better than
that listed on the public trading venues.
"A crossing" or "crossed trade", is a trade which has
resulted from matching a buyer and a seller of a particular stock,
where the buyer and seller are clients of the same broker.
CX is a trade that has occurred in ASX CentrePoint at the
current midpoint price. The midpoint price is determined by
ASX to be the midpoint between the current ASX bid/offer spread.
CXXT is a cross trade or crossing that has occurred in ASX
CentrePoint at the current midpoint price.
No. There is no change to the way you interact with us today
when specifying your order. You can continue to place instructions
with us using your preferred order entry channel.
No. We will automatically access the trading venue(s) that will
provide you with the best outcome for your order in accordance with
our Best Execution Policy. We have always sought to get best trade
execution for you and will continue to do so, however now we do
this across several markets instead of just one.
You will not be required to specify the market in which you want
to place your equity order.
Yes. Your existing CHESS sponsorship will remain.
Regardless of what venues orders are executed on, all trades will
settle in the same way they do today. If you are CHESS sponsored by
us, your stock will settle to your nominated HIN as it does
today.
Chi-X Australia allows trading between the hours of 10:00AM and
4:12PM. Unlike the ASX, Chi-X Australia does not operate an opening
and closing auction. Once we are connected to Chi-X Australia, we
will automatically send orders to the most appropriate and open
trading venue(s) in accordance with our best execution policy.
The ASX will now operate a primary trading venue known as
ASX TradeMatch and new trading venues known ASX Centrepoint and ASX
Pure Match where ASX equity trading activity is
conducted. With the introduction of a competitor venue, Chi-X
Australia, equity trading activity for a set of equity securities
may now be conducted on a trading venue other than ASX
TradeMatch.
The introduction of Chi-X Australia effectively creates multiple
markets where a stock can be traded - for example, stocks like BHP,
Telstra and other top 200 stocks may now be traded on both ASX
TradeMatch, ASX Centrepoint, ASX PureMatch and Chi-X Australia.
Our Best Execution arrangement applies to "Equity Market
Products" traded on the ASX, these include:
- Shares
- Managed investment schemes (including exchange traded
funds(ETFs)
- Rights; and
- Company options
Our Best Execution arrangements do not cover:
- Exchange Traded Options (ETOs)
- Contract For Differences (CFDs); and
- Futures and index products
From March 2012, CommSec will automatically consider trading
opportunities available on Chi-X Australia, in addition to ASX
venues (excluding PureMatch), when accepting your order. This
is to ensure you receive the best trade outcome available in
accordance with our Best Execution Policy.
Your orders may automatically benefit from better prices or
faster order execution available in Chi-X, or any trading venue
that CommSec participates in.
Simply continue to place your orders using your preferred method
and CommSec will do the rest.