The European Markets in Financial Instruments Directive (“MiFID II”) represents a very important change in financial markets, even if its implementation applies as a continuation of MiFID I. This new directive will ensure greater investor protection, expanded asset class coverage and structural market reforms. It is applicable for firms previously exempted from MiFID I. MiFID II will dramatically change almost the entire marketplace, with far-reaching impacts on everyone engaged in the dealing and the processing of financial instruments.
Market & Financing Services Division (“MFS”) of BNP Paribas Securities Services (“BP2S”) acts in a principal capacity when transacting FX Spot with Clients, and as such:
In all circumstances, MFS commits to deliver fair and equitable FX Spot execution. The pricing is based on market price at the time of execution. Due to the high liquidity of the FX spot market, the market price is continuously observable on main trading platform (for example BBG) and thus execution can be assessed and benchmarked at any time.
MFS will then apply client margin over the market price. The margin is subject to strict internal guidelines and ex-post controls.
Finally, MFS is able to disclose, at any time and upon client request, all the pricing details.