Certificates - describes bonds whose value is derived from the value of another financial instrument (underlying).
Execution criteria - describe the criteria listed in section 3.1 of this document.
Execution factors - describe the factors listed in section 3.2. of this document.
Execution venue - describes a regulated market, a MTF, a SI, an OTF, a market maker or different liquidity provider and/or a unit which realizes a similar task to one of the aforementioned instances.
ETD - describes an standardised derivative financial instrument traded on a regulated derivative exchange.
ETF - describes an exchange-traded investment fund, which is usually operated as an index fund.
Intermediary - describes an investment service company to which UBS transmits orders to buy and sell financial instruments.
Financial instruments - include all products according to Annex I section C of the Directive 2014/65/EU. These include in particular (not exhaustively):
i. equities and exchange traded investment funds (so called ETFs);
ii. fixed income and money-market instruments;
iii. securitised derivatives;
iv. non-securitised standardised forward contracts (futures) and options (ETD) traded on a regulated derivative exchange;
v. non-securitised and non-standardised derivatives traded over the counter (OTC); and
vi. shares in open investment funds.
In order to rule out misunderstandings, "Financial instruments" do not include "spot transactions" or credits, wherein, with reference to commodities, certain exceptions apply. For more details see section 11.
Total costs - is the price of the financial instrument and all costs associated with its execution.
Commission business - refers to the purchase and sale of financial instruments in their own name for the account of third parties (financial commission business)
Clients - Within the framework of the execution principles, both retail clients (Art. 4(11) Directive 2014/65/EU) and professional clients (Art. 4(11) Directive 2014/65/EU) are included. Professional clients are those clients where UBS can assume that they have the experience, knowledge and expertise to make their investment decisions and take appropriate account of the risks involved. Retail clients are those clients who are not professional clients and where higher consumer protection standards apply.
Multilateral Trading Facility ("MTF") - describes a multilateral system operated by an investment firm or a market operator, which brings together multiple third-party buying and selling interests in financial instruments in a way that results in a contract.
Order - describes the instruction to buy or sell a financial instrument which is accepted by UBS for execution or for passing on to a third party.
Organised Trading Facility ("OTF") - means a multilateral system which is not a regulated market or an MTF and in which multiple third-parties buying and selling interests in bonds, structured finance products, emission allowances or derivatives are able to interact in the system in a way that results in a contract.
Regulated Market ("RM") - describes a multilateral system operated and/or administered by a market operator which consolidates or promotes the consolidation of the interests of a large number of third parties in the purchasing and selling of financial instruments within the system and according to its rules which, in such way, works properly and leads to a contract in relation to financial instruments which have been approved for trading in accordance with the rules and/or the systems of the market and which have received an approval.
Systematic Internaliser ("SI") - describes an investment firm which, on an organised, frequent systematic and substantial basis, deals on own account when executing client orders outside a regulated market, an MTF or an OTF without operating a multilateral system.
Trading Venue - describes a regulated market, a MTF or an OTF.