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Template:Calculation agent dispute: Difference between revisions
Template:Calculation agent dispute (view source)
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*Secondly, we are owe you [[best execution]]<ref>Admittedly this only holds if the [[Dealer]] ''does'' owe best execution, but if it is {{tag|MiFID}}-regulated and you are a [[professional client]], it will.</ref> | *Secondly, we are owe you [[best execution]]<ref>Admittedly this only holds if the [[Dealer]] ''does'' owe best execution, but if it is {{tag|MiFID}}-regulated and you are a [[professional client]], it will.</ref> | ||
*Thirdly, because we delta-one]] hedge, we come up with our {{eqderivprov|Determination Agent}} “determination” by actually selling the right number of shares. It isn’t like we confect some hypothetical valuation based on a model some geek in correlation trading built in [[excel]]. We don't go ask some stooge dealers for a soft estimate, and promise them champagne in the mail. We ''actually sell the stock''. Our own money out the door. We can't get it back. What you are asking is to second guess that actual transaction by ''you'' being able to appoint some stooge dealer for a soft estimate. | *Thirdly, because we delta-one]] hedge, we come up with our {{eqderivprov|Determination Agent}} “determination” by actually selling the right number of shares. It isn’t like we confect some hypothetical valuation based on a model some geek in correlation trading built in [[excel]]. We don't go ask some stooge dealers for a soft estimate, and promise them champagne in the mail. We ''actually sell the stock''. Our own money out the door. We can't get it back. What you are asking is to second guess that actual transaction by ''you'' being able to appoint some stooge dealer for a soft estimate. | ||
*Fourthly, there are a ton of controls on us already, | *Fourthly, there are a ton of controls on us already, contractual, regulatory and economic: | ||
*Contractual: The whole of Section {{eqderivprov|12.8}} is shot through with requirements to act in a [[commercially reasonable manner]], using {{eqderivprov|commercially reasonable procedures}}, going out to leading dealers and so on. | **'''Contractual''': The whole of Section {{eqderivprov|12.8}} is shot through with requirements to act in a [[commercially reasonable manner]], using {{eqderivprov|commercially reasonable procedures}}, going out to leading dealers and so on. | ||
**'''Regulatory''': There's the best execution obligation. The COBS rules require us to treat our clients fairly. | |||
**'''Economic''': You are the ''[[client]]''. You can pull your business. You can decide to never give us another trade. Seeing as we are [[delta-one]] hedged, we have no incentive at all to lowball, and every incentive to give you the best price we can manage. | |||