terms and conditions for trading in financial instruments - Danske Bank
terms and conditions for trading in financial instruments - Danske Bank
terms and conditions for trading in financial instruments - Danske Bank
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
TERMS AND CONDITIONS<br />
FOR TRADING IN FINANCIAL<br />
INSTRUMENTS<br />
APPLICABLE AS FROM 17 APRIL 2012<br />
1
The follow<strong>in</strong>g is a description of the <strong>conditions</strong><br />
applicable to <strong>trad<strong>in</strong>g</strong> <strong>in</strong> f<strong>in</strong>ancial <strong>in</strong>struments offered by<br />
the bank (as securities <strong>trad<strong>in</strong>g</strong>).<br />
Currency <strong>and</strong> derivatives <strong>trad<strong>in</strong>g</strong> is subject to special<br />
agreements <strong>and</strong> to Terms <strong>and</strong> <strong>conditions</strong> <strong>for</strong> currency<br />
<strong>and</strong> derivatives <strong>trad<strong>in</strong>g</strong>.<br />
1. BEFORE TRADING<br />
You can engage <strong>in</strong> securities <strong>trad<strong>in</strong>g</strong> when you have<br />
entered <strong>in</strong>to an agreement on custody services <strong>and</strong><br />
<strong>trad<strong>in</strong>g</strong> <strong>in</strong> f<strong>in</strong>ancial <strong>in</strong>struments.<br />
1.1. CATEGORISATION OF CUSTOMERS<br />
We are required to group our customers <strong>in</strong>to three<br />
categories as described <strong>in</strong> the Executive Order on<br />
Investor Protection <strong>in</strong> connection with Securities Trad<strong>in</strong>g<br />
issued by the Danish F<strong>in</strong>ancial Supervisory Authority.<br />
The three categories are:<br />
• eligible counterparties (other banks, pension funds<br />
<strong>and</strong> <strong>in</strong>surance companies, etc.)<br />
• professional <strong>in</strong>vestment customers (typically very<br />
large corporate customers)<br />
• retail clients (all other customers).<br />
Based on objective criteria, the categorisation impacts<br />
the level of protection af<strong>for</strong>ded to you as an <strong>in</strong>vestor –<br />
that is the <strong>in</strong><strong>for</strong>mation <strong>and</strong> advice you are entitled to<br />
receive from us. Retail customers enjoy the highest level<br />
of protection, professional customers are af<strong>for</strong>ded less<br />
protection <strong>and</strong> eligible counterparties are generally not<br />
af<strong>for</strong>ded <strong>in</strong>vestor protection.<br />
To some extent you may be able to change your category<br />
– <strong>in</strong> such case you should contact your adviser.<br />
1.2. EXPERIENCE AND KNOWLEDGE<br />
If you are a retail client, we will assess what types of<br />
2<br />
This is a translation of the document “Bet<strong>in</strong>gelser<br />
<strong>for</strong> h<strong>and</strong>el med værdipapirer” <strong>in</strong> the Danish language.<br />
In case of discrepancies, the Danish version<br />
prevails.<br />
securities you have knowledge of <strong>and</strong> experience of<br />
<strong>trad<strong>in</strong>g</strong> <strong>in</strong> – we call it your <strong>trad<strong>in</strong>g</strong> range. In order to<br />
identify your <strong>trad<strong>in</strong>g</strong> range <strong>and</strong> determ<strong>in</strong>e the securities<br />
that would be appropriate <strong>for</strong> you, we require some<br />
<strong>in</strong><strong>for</strong>mation.<br />
After we have received the necessary <strong>in</strong><strong>for</strong>mation, you<br />
will be notified of the types of securities <strong>in</strong>cluded <strong>in</strong> your<br />
<strong>trad<strong>in</strong>g</strong> range.<br />
We recommend that you do not trade <strong>in</strong> securities not<br />
<strong>in</strong>cluded <strong>in</strong> your <strong>trad<strong>in</strong>g</strong> range without seek<strong>in</strong>g advice.<br />
Such securities may be associated with risks unknown<br />
to you.<br />
1.3. MARKET ABUSE (INSIDE INFORMATION AND<br />
PRICE MANIPULATION)<br />
Please note that you are not permitted to buy, sell or<br />
<strong>in</strong>vite others to buy <strong>and</strong> sell securities if you have <strong>in</strong>side<br />
<strong>in</strong><strong>for</strong>mation that may be of importance to the trade.<br />
Nor are you permitted to trade <strong>in</strong> a manner that are<br />
likely to <strong>in</strong>fluence the price of a security <strong>in</strong> a direction<br />
deviat<strong>in</strong>g from the value of the relevant security <strong>in</strong> the<br />
market.<br />
Violation of the prohibitions aga<strong>in</strong>st misuse of <strong>in</strong>side<br />
<strong>in</strong><strong>for</strong>mation <strong>and</strong> price manipulation is punishable by f<strong>in</strong>e<br />
or imprisonment.<br />
2. WHEN TRADING<br />
You can contact us either by telephone or <strong>in</strong> person if<br />
you want to seek advice.<br />
If you do not wish to speak to an adviser, we recommend<br />
that you use our self-service systems. These systems<br />
ensure speedy identification of you <strong>and</strong> proper execution<br />
of your <strong>trad<strong>in</strong>g</strong> order.<br />
However, please note that not all securities we offer <strong>for</strong><br />
<strong>trad<strong>in</strong>g</strong> can be traded through the self-service systems.<br />
If you place orders by letter, e-mail or fax, you should<br />
expect longer process<strong>in</strong>g times, because we must check<br />
the order documentation manually. You can shorten the<br />
process<strong>in</strong>g time by call<strong>in</strong>g us, when you transmit the order.
We are entitled to record telephone conversations about<br />
securities trades. Such record<strong>in</strong>gs may serve as proof of<br />
any agreements made. The record<strong>in</strong>gs are <strong>for</strong> our own<br />
use only.<br />
If you place an order outside the bank’s normal open<strong>in</strong>g<br />
hours, such order will be executed on the next follow<strong>in</strong>g<br />
bus<strong>in</strong>ess day. You can f<strong>in</strong>d the bank’s normal open<strong>in</strong>g<br />
hours at www.danskebank.dk.<br />
Your order will be b<strong>in</strong>d<strong>in</strong>g upon receipt by the bank, <strong>and</strong><br />
consequently you will not be able to delete or withdraw<br />
the order, unless it has not yet been executed. If you use<br />
the ”delete order” comm<strong>and</strong> <strong>in</strong> a self-service system, you<br />
should be aware that the bank may have executed your<br />
order be<strong>for</strong>e your request <strong>for</strong> deletion is processed. If<br />
your order has already been executed, your request <strong>for</strong><br />
deletion cannot be met.<br />
We will execute your order accord<strong>in</strong>g to the <strong>terms</strong><br />
described <strong>for</strong> each type of order <strong>and</strong> <strong>in</strong> accordance with<br />
our Order Execution Policy. The policy applies to retail<br />
customers <strong>and</strong> professional customers.<br />
If changes have been agreed <strong>in</strong> the way we are permitted<br />
to execute an order when the order is placed, we<br />
may not be able to execute your order <strong>in</strong> whole or <strong>in</strong><br />
part accord<strong>in</strong>g to the pr<strong>in</strong>ciples def<strong>in</strong>ed <strong>in</strong> our Order<br />
Execution Policy.<br />
You can f<strong>in</strong>d our Order Execution Policy on the bank’s<br />
website.<br />
2.1. ORDER TYPES<br />
We offer the follow<strong>in</strong>g order types<br />
Market orders<br />
• Market orders with limit (limit order)<br />
• Market orders without limit (market order)<br />
• Immediate trade<br />
Average price orders<br />
The short <strong>for</strong>ms ”limit order” <strong>and</strong> ”market order” are used<br />
<strong>in</strong> e.g. e-bank<strong>in</strong>g <strong>and</strong> on contract notes.<br />
2.1.1 MARKET ORDERS WITH<br />
AND WITHOUT LIMIT<br />
We choose the <strong>trad<strong>in</strong>g</strong> venue <strong>and</strong> the order execution<br />
method that is most advantageous to you.<br />
For certa<strong>in</strong> securities traded <strong>in</strong> several <strong>trad<strong>in</strong>g</strong> venues,<br />
we may seek to execute your market order <strong>in</strong> one or<br />
more transactions on these <strong>trad<strong>in</strong>g</strong> venues. We may<br />
use IT systems that ma<strong>in</strong>ly execute your order on the<br />
basis of price <strong>and</strong> costs <strong>in</strong> selected <strong>trad<strong>in</strong>g</strong> venues<br />
with sufficient liquidity <strong>and</strong> where we expect to obta<strong>in</strong><br />
the best available price <strong>in</strong> accordance with our Order<br />
Execution Policy.<br />
The trades are made or agreed <strong>in</strong> our name, but <strong>for</strong> your<br />
account. Thus, trades are executed on a commission<br />
basis.<br />
You may <strong>in</strong>struct that your order applies <strong>for</strong> a period of<br />
time by select<strong>in</strong>g an expiry date<br />
Limit<br />
You have the option of plac<strong>in</strong>g your order as a ”market<br />
order with limit” or as a ”market order without limit”.<br />
If you choose a ”market order with limit”, it means that<br />
you must set a limit price.<br />
Choose this option if you want to buy or sell at a specific<br />
price. There may be restrictions on <strong>in</strong>dividual securities<br />
as to how much a limit may deviate from the prevail<strong>in</strong>g<br />
market price.<br />
When limit<strong>in</strong>g an order, you also agree that your limit<br />
order will not be published if it cannot be executed<br />
immediately under prevail<strong>in</strong>g market <strong>conditions</strong>.<br />
We, or the broker selected by us, seek to execute the<br />
order when the price corresponds to the price set by<br />
you.<br />
If you choose a ”market order without limit”, we will set<br />
the limit price at which we will seek to execute the order<br />
based on the applicable market <strong>conditions</strong>. If we decide<br />
<strong>for</strong> the order to be executed through another broker, the<br />
limit may be set by that broker.<br />
3
Trad<strong>in</strong>g venues<br />
The bank selects different <strong>trad<strong>in</strong>g</strong> venues considered<br />
capable of provid<strong>in</strong>g the best possible order execution.<br />
A list of the pr<strong>in</strong>cipal <strong>trad<strong>in</strong>g</strong> venues we use <strong>and</strong> details<br />
of our selection criteria are available <strong>in</strong> our Order<br />
Execution Policy f<strong>in</strong>ancial <strong>in</strong>struments. You can f<strong>in</strong>d the<br />
policy on our website.<br />
We may choose to trade directly <strong>in</strong> a regulated market<br />
if we are a member of such market. (This is the case <strong>for</strong><br />
NASDAQ OMX Copenhagen <strong>for</strong> example).<br />
Furthermore, we can choose to trade <strong>in</strong> other organised<br />
markets, multilateral <strong>trad<strong>in</strong>g</strong> facilities (MTFs), <strong>in</strong>ternal<br />
cross<strong>in</strong>g networks, <strong>in</strong>clud<strong>in</strong>g dark pools <strong>and</strong> similar<br />
<strong>trad<strong>in</strong>g</strong> facilities. Trad<strong>in</strong>g may be effected either directly<br />
or through a <strong>trad<strong>in</strong>g</strong> venue.<br />
We may act as a counterparty (buyer or seller) to a trade<br />
executed <strong>in</strong> a regulated market, MTF or another market<br />
(contract<strong>in</strong>g <strong>in</strong> our own name). The contract note will set<br />
out that the trade was made on the relevant market with<br />
the bank as the counterparty.<br />
We can also execute your order outside a <strong>trad<strong>in</strong>g</strong> venue.<br />
This is referred to as over-the-counter <strong>trad<strong>in</strong>g</strong> (OTC). In<br />
such case, it is either a immediate trade directly with us<br />
(see 2.1.2) or a transaction with another broker selected<br />
by us. If a broker is the buyer or seller <strong>in</strong> the trade, the<br />
contract note will state that the trade was OTC.<br />
In addition to execut<strong>in</strong>g the trade directly with himself,<br />
the selected broker can choose to execute the trade on<br />
or through a market or <strong>trad<strong>in</strong>g</strong> facility.<br />
For certa<strong>in</strong> securities, your order will not be executed as<br />
a purchase/sale, but as a subscription/redemption with<br />
a provider. This is the case when a relevant security is<br />
offered <strong>for</strong> the first time (issue). Also, units <strong>in</strong> collective<br />
<strong>in</strong>vestment schemes can be subscribed <strong>for</strong> or redeemed<br />
on a ongo<strong>in</strong>g basis with the provider of the relevant<br />
collective <strong>in</strong>vestment units <strong>in</strong>stead of be<strong>in</strong>g traded<br />
<strong>in</strong> a market. Subscription <strong>and</strong> redemption is effected<br />
accord<strong>in</strong>g to the rules of the relevant prospectus.<br />
4<br />
Time of execution<br />
We will seek to process your market order as quickly as<br />
possible. If an order is placed outside the space of time<br />
when we process orders <strong>in</strong> the relevant security, we will<br />
not seek to execute the order until we aga<strong>in</strong> open <strong>trad<strong>in</strong>g</strong><br />
<strong>in</strong> the relevant market.<br />
Order execution<br />
When the bank or a selected broker executes a market<br />
order, the rules govern<strong>in</strong>g <strong>trad<strong>in</strong>g</strong> of the relevant market<br />
or broker will apply.<br />
Each market or broker offers different options <strong>for</strong><br />
<strong>trad<strong>in</strong>g</strong> market orders. The bank or the selected broker<br />
determ<strong>in</strong>es on your behalf how to use these options.<br />
When we seek to execute a <strong>trad<strong>in</strong>g</strong> order<br />
• the order may only be executed to the extent that<br />
it can be matched <strong>in</strong> whole or <strong>in</strong> part with bids or<br />
offers.<br />
• the order may be split up or aggregated <strong>and</strong> traded at<br />
different prices dur<strong>in</strong>g the <strong>trad<strong>in</strong>g</strong> day<br />
There may be different reasons why an order is not<br />
executed <strong>in</strong> whole or <strong>in</strong> part. The most common reason<br />
is that price developments do not allow <strong>for</strong> <strong>trad<strong>in</strong>g</strong> at<br />
the limit price <strong>in</strong>dicated or due to a lack of liquidity <strong>in</strong><br />
the relevant security. If your order is placed late <strong>in</strong> the<br />
<strong>trad<strong>in</strong>g</strong> day, there is limited time <strong>in</strong> which to trade, <strong>and</strong><br />
thus even securities that are normally liquid may not<br />
have the required liquidity.<br />
2.1.2. PRINCIPAL TRADING (IMMEDIATE TRADE),<br />
INCLUDING SYSTEMATIC INTERNALISATION<br />
We offer to execute orders as pr<strong>in</strong>cipal (immediate trade)<br />
<strong>in</strong> a range of Danish <strong>and</strong> <strong>in</strong>ternational securities. The<br />
bank determ<strong>in</strong>es on an ongo<strong>in</strong>g basis the securities<br />
offered <strong>and</strong> the maximum amounts available <strong>for</strong> <strong>trad<strong>in</strong>g</strong>.<br />
In a immediate trade, you trade with the bank as the<br />
buyer or seller (counterparty) at a price we determ<strong>in</strong>e. If<br />
you accept the price, the trade is concluded.<br />
Immediate trade elim<strong>in</strong>ates the risk of price fluctuations<br />
that may occur from the time you place the order until<br />
execution. Furthermore, it provides assurance that the<br />
order is executed <strong>in</strong> full.
We reserve the right to restrict the execution of orders<br />
<strong>in</strong> shares if we receive a large number of orders <strong>for</strong><br />
the same shares at the same time from one or more<br />
customers.<br />
Please note that you are not permitted to <strong>in</strong>fluence<br />
the price by plac<strong>in</strong>g conflict<strong>in</strong>g orders yourself <strong>in</strong> the<br />
market <strong>in</strong> which you wish to buy or sell securities.<br />
Several judgments given <strong>in</strong> the Danish High Court<br />
have established that such conduct constitutes<br />
price manipulation which is a violation of the Danish<br />
Securities Trad<strong>in</strong>g Act. Price manipulation is punishable<br />
by f<strong>in</strong>e or imprisonment.<br />
In relation to certa<strong>in</strong> pr<strong>in</strong>cipal <strong>trad<strong>in</strong>g</strong>, supplementary<br />
rules on systematic <strong>in</strong>ternalisation apply. See below.<br />
Determ<strong>in</strong>ation of prices of pr<strong>in</strong>cipal tr<strong>and</strong><strong>in</strong>g (immediate<br />
trade)<br />
Our prices <strong>for</strong> pr<strong>in</strong>cipal <strong>trad<strong>in</strong>g</strong> are equal or more<br />
favourable than the prices we can obta<strong>in</strong> ourselves on<br />
the relevant market – tak<strong>in</strong>g <strong>in</strong>to account time, volume<br />
<strong>and</strong> <strong>trad<strong>in</strong>g</strong> <strong>conditions</strong>.<br />
For securities traded on NASDAQ OMX Copenhagen,<br />
Stockholm <strong>and</strong> Hels<strong>in</strong>ki as well as Oslo Børs, the bank<br />
will determ<strong>in</strong>e a price with<strong>in</strong> or equal to the best bid or<br />
offer on the relevant markets.<br />
If you trade after clos<strong>in</strong>g on these markets, we determ<strong>in</strong>e<br />
the price <strong>for</strong> pr<strong>in</strong>cipal <strong>trad<strong>in</strong>g</strong> on the basis of the clos<strong>in</strong>g<br />
price. However, the price will be changed if events<br />
affect<strong>in</strong>g prices have occurred after the market has<br />
closed.<br />
For other securities <strong>and</strong> <strong>in</strong> the event that no current<br />
bids/offers are available on the relevant markets, we<br />
determ<strong>in</strong>e the price <strong>for</strong> pr<strong>in</strong>cipal <strong>trad<strong>in</strong>g</strong> tak<strong>in</strong>g <strong>in</strong>to<br />
account current market <strong>conditions</strong>, <strong>in</strong>clud<strong>in</strong>g<br />
• supply <strong>and</strong> dem<strong>and</strong><br />
• the price level of the most recent trades<br />
• events affect<strong>in</strong>g the price – domestic as well as<br />
<strong>in</strong>ternational<br />
• available <strong>in</strong><strong>for</strong>mation about the issuer <strong>and</strong> the<br />
issuer’s l<strong>in</strong>e of bus<strong>in</strong>ess<br />
• the price developments of similar securities –<br />
(bonds/fixed <strong>in</strong>come only)<br />
• price <strong>in</strong><strong>for</strong>mation from issuers (only applicable to<br />
units of collective <strong>in</strong>vestment schemes, e.g. units of<br />
<strong>in</strong>vestment funds).<br />
Unless otherwise agreed, we decide <strong>in</strong> which currency<br />
the immediate trade <strong>in</strong> <strong>in</strong>ternational securities should be<br />
settled.<br />
We update our bid/ask prices <strong>for</strong> such equities on an<br />
ongo<strong>in</strong>g basis. In unusual market <strong>conditions</strong>, we may<br />
withdraw our bid/ask prices.<br />
Specific <strong>in</strong><strong>for</strong>mation about systematic <strong>in</strong>ternalisation<br />
We are required to publish our prices of immediate<br />
trades on an ongo<strong>in</strong>g basis <strong>for</strong> a number of equities with<br />
a large <strong>trad<strong>in</strong>g</strong> volume <strong>in</strong> a regulated market. This is<br />
due to the fact that we frequently, systematically <strong>and</strong> <strong>in</strong><br />
an organised manner buy or sell securities <strong>and</strong> match<br />
customers’ orders outside a regulated market – which<br />
is also referred to as ’systematic <strong>in</strong>ternalisation’. Your<br />
contract note will state if the immediate trades was<br />
executed accord<strong>in</strong>g to the rules govern<strong>in</strong>g systematic<br />
<strong>in</strong>ternalisation.<br />
A list of these equities are available at www.<br />
danskebank.dk.<br />
Immediate trades <strong>in</strong> equities executed accord<strong>in</strong>g to the<br />
rules govern<strong>in</strong>g systematic <strong>in</strong>ternalisation are effected<br />
at the bank’s published price of real-time transactions<br />
applicable on receipt of your order. Caps apply to such<br />
trades. The caps <strong>and</strong> the prices of immediate trades are<br />
available at www.danskebank.dk.<br />
2.1.3 AVERAGE PRICE ORDER<br />
Average price orders is an option offered by us <strong>for</strong><br />
<strong>trad<strong>in</strong>g</strong> <strong>in</strong> certa<strong>in</strong> securities. It implies settlement<br />
at an average price. You trade with the bank as the<br />
counterparty <strong>and</strong> <strong>trad<strong>in</strong>g</strong> venue.<br />
2.1.3.1 AVERAGE PRICE TRADING<br />
BASED ON PRICES QUOTED ON<br />
NASDAQ OMX COPENHAGEN<br />
You can trade at average prices <strong>in</strong> selected shares <strong>and</strong><br />
units of collective <strong>in</strong>vestment schemes admitted to<br />
<strong>trad<strong>in</strong>g</strong> on NASDAG OMX Copenhagen.<br />
5
The bank acts as the buyer or seller <strong>in</strong> average price<br />
trades. The order is executed on or be<strong>for</strong>e the first<br />
bus<strong>in</strong>ess day after receipt by the bank of your order.<br />
We settle the trade at the weighted average price<br />
calculated by NASDAQ OMX Copenhagen at the clos<strong>in</strong>g<br />
of the <strong>trad<strong>in</strong>g</strong> day plus/less the bank’s usual premium/<br />
discount. The bank’s premiums/discounts are available<br />
at www.danskebank.dk.<br />
Where the relevant share or unit is not traded regularly,<br />
we can determ<strong>in</strong>e a price. The same applies if no bid/ask<br />
prices have been provided <strong>in</strong> the execution venues of<br />
NASDAQ OMX Copenhagen at the time of <strong>trad<strong>in</strong>g</strong> on the<br />
relevant <strong>trad<strong>in</strong>g</strong> day.<br />
The price is determ<strong>in</strong>ed tak<strong>in</strong>g <strong>in</strong>to account<br />
• supply <strong>and</strong> dem<strong>and</strong><br />
• the price level of the most recent trades<br />
• events affect<strong>in</strong>g the price – domestic as well as<br />
<strong>in</strong>ternational<br />
• available <strong>in</strong><strong>for</strong>mation about the issuer <strong>and</strong> the<br />
issuer’s l<strong>in</strong>e of bus<strong>in</strong>ess<br />
• most recent price <strong>in</strong><strong>for</strong>mation from issuers (only<br />
applicable to units of collective <strong>in</strong>vestment schemes,<br />
e.g. units of <strong>in</strong>vestment funds).<br />
If the <strong>trad<strong>in</strong>g</strong> volume on the execution venue of NASDAQ<br />
OMX Copenhagen on the <strong>trad<strong>in</strong>g</strong> day is less than the<br />
size of the order, the bank is under no obligation to settle<br />
the order.<br />
Nor do we have any obligation to settle your order if we<br />
can only procure the securities at a price exceed<strong>in</strong>g<br />
the calculated, weighted average price at clos<strong>in</strong>g on the<br />
<strong>trad<strong>in</strong>g</strong> day.<br />
2.1.3.2. OTHER AVERAGE PRICE TRADES<br />
If your order constitutes a significant part of the average<br />
daily <strong>trad<strong>in</strong>g</strong> volume <strong>in</strong> the relevant security, we may<br />
offer, by <strong>in</strong>dividual agreement, to execute the order at a<br />
calculated volume-weighted average price. A volumeweighted<br />
average price transaction is executed based on<br />
<strong>trad<strong>in</strong>g</strong> dur<strong>in</strong>g a specific period of time on a given <strong>trad<strong>in</strong>g</strong><br />
day – e.g. the average price of all trades <strong>in</strong> the relevant<br />
security between 10 am <strong>and</strong> 2 pm <strong>in</strong> a selected market.<br />
6<br />
2.1.4. TRADING IN SPECIAL SECURITIES<br />
To some extent we offer you the option of <strong>trad<strong>in</strong>g</strong> <strong>in</strong><br />
securities not admitted to <strong>trad<strong>in</strong>g</strong> <strong>in</strong> regulated markets<br />
or other markets – <strong>in</strong>clud<strong>in</strong>g mortgage deeds – with the<br />
bank act<strong>in</strong>g as the buyer or seller at prevail<strong>in</strong>g market<br />
prices. Our prices correspond to the prices we are able<br />
to obta<strong>in</strong> ourselves tak<strong>in</strong>g <strong>in</strong>to account time, quantity<br />
<strong>and</strong> <strong>trad<strong>in</strong>g</strong> <strong>terms</strong>.<br />
2.2. CANCELLATION OF MARKET ORDERS<br />
An order is cancelled automatically if it cannot be<br />
completed on the day it is placed or on the next follow<strong>in</strong>g<br />
<strong>trad<strong>in</strong>g</strong> day provided that the order is placed at a time<br />
when we do not offer <strong>trad<strong>in</strong>g</strong> <strong>in</strong> the relevant security.<br />
However, this does not apply where a period of time has<br />
been agreed <strong>for</strong> the order. See paragraph 2.1.1.<br />
2.2.1. SPECIAL MARKET SITUATION<br />
The bank reserves the right not to execute an order <strong>in</strong><br />
the event of a special market situation.<br />
2.2.2. OBSERVATION LISTS AND SUSPENSION OF<br />
TRADING<br />
If a security is placed on the observation list or is<br />
suspended from <strong>trad<strong>in</strong>g</strong> <strong>in</strong> the relevant regulated market,<br />
we will cancel all orders <strong>in</strong> such security when no trade<br />
has yet been concluded.<br />
2.3 CANCELLATION OF TRANSACTIONS MADE<br />
Trades generated by mistake or accident can be<br />
cancelled accord<strong>in</strong>g to the rules of the market <strong>in</strong><br />
question or other regulations. An example of such<br />
cancellation could be if a trade is executed at a price<br />
deviat<strong>in</strong>g strongly from the actual market price. This<br />
applies whether or not <strong>trad<strong>in</strong>g</strong> is happen<strong>in</strong>g on or off the<br />
market.<br />
2.4 FOREIGN EXCHANGE<br />
In connection with the execution of a trade <strong>in</strong> securities<br />
traded <strong>in</strong> <strong>for</strong>eign currency, we exchange the required<br />
amount unless otherwise agreed.<br />
Generally, such exchange is effected directly <strong>in</strong><br />
cont<strong>in</strong>uation of the trade at the bank’s spot rate (rate<br />
chang<strong>in</strong>g regularly dur<strong>in</strong>g the day) plus a charge on the<br />
purchase of <strong>for</strong>eign currency or less a deduction upon<br />
the sale of <strong>for</strong>eign currency.
If you trade through an adviser, you can <strong>in</strong>struct the<br />
adviser to postpone such exchange <strong>in</strong> relation to a<br />
specific trade until the rate is determ<strong>in</strong>ed based on the<br />
quotations of the Danish central bank two days prior<br />
to the settlement date (value date) plus/less a charge/<br />
deduction.<br />
2.5. SETTLEMENT NOTE<br />
We will send a note stat<strong>in</strong>g the settlement price, <strong>trad<strong>in</strong>g</strong><br />
venue, order type <strong>and</strong> other <strong>in</strong><strong>for</strong>mation <strong>for</strong> each trade.<br />
We will dispatch the note not later than the first weekday<br />
after the execution of the trade.<br />
2.6. DELIVERY AND PAYMENT (SETTLEMENT)<br />
Settlement means delivery <strong>and</strong> payment <strong>in</strong> connection<br />
with securities <strong>trad<strong>in</strong>g</strong>.<br />
For Danish securities, the settlement date is the third<br />
bus<strong>in</strong>ess/<strong>trad<strong>in</strong>g</strong> day after the date of execution of the<br />
trade.<br />
With regard to <strong>in</strong>ternational securities, different times<br />
of payment <strong>and</strong> settlement rules apply. We cannot sell<br />
<strong>in</strong>ternational securities until they have been checked<br />
<strong>and</strong> registered by the bank’s relevant <strong>for</strong>eign bus<strong>in</strong>ess<br />
partner.<br />
The prices of custody of <strong>in</strong>ternational securities are<br />
available at www.danskebank.dk.<br />
The bank reta<strong>in</strong>s the ownership of the securities bought<br />
by you until they have been paid <strong>for</strong>, <strong>and</strong> the bank may<br />
use securities be<strong>in</strong>g settled as collateral under the rules<br />
of law to that effect.<br />
When you buy securities, you acquire unconditional<br />
ownership of the securities purchased only if we receive<br />
f<strong>in</strong>al payment on the settlement date.<br />
When you sell securities, our payment of the settlement<br />
amount is conditional on us acquir<strong>in</strong>g unconditional<br />
ownership of the securities on the settlement date.<br />
If a trade is placed with a counterparty who cannot<br />
deliver on time, we will seek to ensure that the<br />
transaction is executed as quickly as possible. If this<br />
is not possible, we have no obligation to <strong>in</strong>dependently<br />
execute the trade s<strong>in</strong>ce we are not the counterparty.<br />
2.7. TRADING COSTS<br />
We charge brokerage <strong>for</strong> all trades.<br />
In general, brokerage fees are lower when <strong>trad<strong>in</strong>g</strong><br />
through our selfservice channels than through our<br />
departments. The rates are available at<br />
www.danskebank.dk.<br />
The brokerage rates are subject to change accord<strong>in</strong>g<br />
to the same rules as those applicable to changes to<br />
our <strong>in</strong>terest rates <strong>and</strong> fees as per the bank’s General<br />
<strong>conditions</strong>.<br />
The bank’s price of immediate trades <strong>in</strong> bonds admitted<br />
to <strong>trad<strong>in</strong>g</strong> on NASDAQ OMX Copenhagen may deviate<br />
by a premium/discount of up to 0.50 po<strong>in</strong>ts from the<br />
quoted price. This is due to the fact that we determ<strong>in</strong>e<br />
a price of immediate trades reflect<strong>in</strong>g the market of the<br />
specific bond at the time of <strong>trad<strong>in</strong>g</strong> <strong>in</strong> relation to the size<br />
of the order <strong>and</strong> the <strong>trad<strong>in</strong>g</strong> volume <strong>in</strong> the market.<br />
Trad<strong>in</strong>g costs <strong>in</strong> the <strong>for</strong>m of a premium/discount to the<br />
price are not calculated <strong>for</strong> immediate trades <strong>in</strong> equities.<br />
However, we charge <strong>trad<strong>in</strong>g</strong> costs as a premium/<br />
discount to the price of equities, <strong>in</strong>vestment units <strong>and</strong><br />
bonds traded <strong>in</strong> average price trades.<br />
3. GENERAL ISSUES<br />
Our <strong>terms</strong> <strong>and</strong> <strong>conditions</strong> are subject to change from<br />
time to time with effect <strong>for</strong> future trades. In the event of<br />
significant changes to the service(s) provided to you, you<br />
will receive reasonable advance notice by letter - either<br />
by ord<strong>in</strong>ary mail or electronically.<br />
The updated <strong>terms</strong> <strong>and</strong> <strong>conditions</strong> are available <strong>in</strong><br />
<strong>Danske</strong> e<strong>Bank</strong><strong>in</strong>g, at www.danskebank.dk, or from our<br />
branches on request.<br />
Unless otherwise agreed with the bank, these <strong>terms</strong><br />
<strong>and</strong> <strong>conditions</strong> will apply <strong>in</strong> conjunction with the bank’s<br />
General Conditions.<br />
7
8<br />
18313 · 2012.02 · <strong>Danske</strong> <strong>Bank</strong> A/S · CVR-nr. 61 12 62 28 – København