Information on the African Alliance Best Execution Policy

This policy applies to the Professional Clients of African Alliance Securities Trading Limited (African Alliance) and to the execution of orders in Financial Instruments.  African Alliance will only execute Client Orders as agent.

1. Order Execution 

When executing Client Orders we will act in the best interests of our clients at all times and will take all reasonable steps to obtain the best possible result for our clients taking into account the criteria and factors set out below, subject to any instruction given by our client (see section 4).

2. Best Execution Factors

When we execute an order on behalf of our clients, we will determine the relative importance of the best execution factors based on our experience and judgment, in light of available market information with the prime aim of prompt, fair and expeditious execution of trades.

The Execution Factors to be taken in to account when executing Client Orders include but are not limited to: 

  • Price
  • Cost or commissions of execution
  • Execution capability / speed
  • The current liquidity for the relevant instrument
  • The size and nature of the order
  • Market impact of the transaction
  • Likelihood of settlement

3. Execution Venues

Broker execution – placing the order with a third party, including an affiliate, with whom we have entered into an agreement for handling Client Orders.

  • In countries where African Alliance has a physical presence, we use our own offices which we believe offers the best prospects for providing best execution.
  • In countries where African Alliance does not have a physical presence we appoint one or more agent brokers.

The list of Execution Venues on which we may execute a Client Order is set out below

Botswana

  • African Alliance Botswana Securities

BRVM

  • CGF Bourse
  • SGI Hudson and Cie

Eqypt

  • Beltone Securities Holdings S.A.E
  • Pharos Securities S.A.E

Ghana

  • African Alliance Securities Ghana

Kenya

  • African Alliance Kenya Securities

Malawi

  • African Alliance Securities Malawi Limited

Mauritius

  • AXYS Stockbrokers Limited
  • Swan Securities Limited

Morocco

  • Attijari Intermediation
  • CDG Capital Bourse
  • Mena Capital Partners
  • Upline Securities

Namibia

  • PSG Konsult Wealth Management (Namibia) (Pty) Ltd

Nigeria

  • African Alliance Stockbrokers Nigeria
  • ARM Securities Limited
  • Chapel Hill Denham
  • Cordros Capital Limited
  • CSL Stockbrokers Limited
  • FBN Securities Ltd
  • Stanbic IBTC Stockbrokers Limited
  • UBA Stockbrokers Ltd

Rwanda

  • African Alliance Rwanda Limited

South Africa

  • Navigare Securities (Pty) Ltd

Swaziland

  • African Alliance Swaziland Securities Limited

Tanzania

  • Orbit Securities Company Limited
  • Core Securities Limited
  • E.A. Capital

Tunisia

  • Tunisie Valeurs
  • MAC sa Intermediare en Bourse

Uganda

  • African Alliance Uganda Limited

Zimbabwe

  • ABC Stockbrokers
  • EFE Securities
  • IH Securities (Pvt) Limited
  • Lynton-Edwards Stockbrokers (Private) Limited
  • Old Mutual Securities (Private) Limited
  • Southern Trust Securities (Private) Limited

4. Client Instructions

Where a client gives a specific instruction for the execution of a Client Order then the order will be executed in accordance with those instructions. The client should be aware that providing that instruction may prevent us from taking some of the aforementioned steps to obtain the best possible result for the execution of that Client Order (to the extent of the instructions). These transactions will be deemed to have achieved the best possible result for clients.

5. Order Handling

African Alliance endeavours to execute Client Orders in an expeditious and fair manner for all clients.

Where appropriate, we may aggregate a client order with an order from another customer, where we believe that by doing so it is likely that the aggregation will work to the overall advantage of each of the clients concerned.

6. Monitoring and Review

We review this best execution policy at least annually and whenever a material change occurs that affects our ability to continue to obtain the best results for our clients.  We also monitor the effectiveness of our best execution policy and execution arrangements to identify and where appropriate correct any deficiencies. This will include an assessment of whether the Execution Venues included in this policy continue to provide the best possible result for our clients.

7. Force Majeure and Other Events

Client Orders may not be received, or may not be executed in accordance with the policy, due to situations beyond our reasonable control, including disaster, abnormal market conditions, regulatory requirements, etc. We will not be bound to provide best execution in such circumstances.

8. Broker Approval Process

African Alliance adopts procedures relating to its selection of brokers. Before adding a broker to its list of counterparties evaluates the broker: 

  • Competitiveness of commission rates and spreads
  • Promptness of execution
  • Past history in executing orders
  • Clearance and settlement capabilities
  • Quality of service
  • Willingness to commit capital
  • Access to initial public offerings
  • Access to markets
  • Perceived creditworthiness, reputation and financial stability

The selection of our execution partners is monitored regularly and reviewed at least once a year.

 

Definitions

Professional Clients – an approved client of African Alliance

Client Orders – an instruction to buy or sell a Financial Instrument

Financial Instruments – Equities and Bonds

Execution Factors – as listed in section 2

Execution Venue – as listed in section 3

 

 

 

Disclaimer

Whilst we take all reasonable steps to satisfy ourselves that we have processes in place that can reasonably lead to best execution of client orders, we cannot guarantee that we will always be able to provide best execution of every order that our clients place with us. The diversity of markets and the kind of orders that our clients may place with us lead us to take different factors into account when assessing the nature of our best execution policy. For example in some markets price volatility may mean that timeliness of execution is the main priority, whereas in other markets with low liquidity the ability to fulfil the client’s order may be considered best execution.

Providing best execution does not mean that we assume any fiduciary responsibilities over and above those agreed to in contracts or specific regulatory obligations placed on us.  The policy is not intended to create third party rights or duties that would not already exist if the policy had not been made available and it does not form part of any contract between African Alliance or of any of its affiliates and any client or prospective client.