An AIFM authorized license to provide discretionary portfolio management services regarding financial instruments shall take all reasonable steps to achieve the 'best possible result' when placing orders for the alternative investment funds and discretionary portfolios managed by the company. In Lynx's case, this obligation is mainly about choosing the right counterparty (broker) taking into account a number of regulatory considerations such as price, cost, speed, probability of execution, settlement and other conditions that are essential for the execution. Other essential conditions can be, for example, the broker's access to specific marketplaces or knowledge of the nature of the markets. In summary, the choice of broker is based on the broker's ability to deliver a satisfactory order execution service.
As for the choice of marketplace, the financial instruments included in the Lynx programme - e.g. exchange traded futures - are rarely traded on more than one marketplace. If so, however, it is the company's opinion that the best possible result in this context is usually the market that offers the best liquidity for the instrument in question at any given time. Consequently, when choosing between different marketplaces, Lynx will, as a rule, choose the most liquid.
An up-to-date list of traded markets and Lynx brokers is published at http://www.lynxhedge.se/en/handlade-marknader Lynx's Board of Directors has adopted a policy to ensure best execution. The policy is available for shareholders upon request.