terms and conditions for trading in financial instruments - Danske Bank

TERMS AND CONDITIONS
FOR TRADING IN FINANCIAL
INSTRUMENTS
APPLICABLE AS FROM 17 APRIL 2012
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The following is a description of the conditions
applicable to trading in financial instruments offered by
the bank (as securities trading).
Currency and derivatives trading is subject to special
agreements and to Terms and conditions for currency
and derivatives trading.
1. BEFORE TRADING
You can engage in securities trading when you have
entered into an agreement on custody services and
trading in financial instruments.
1.1. CATEGORISATION OF CUSTOMERS
We are required to group our customers into three
categories as described in the Executive Order on
Investor Protection in connection with Securities Trading
issued by the Danish Financial Supervisory Authority.
The three categories are:
• eligible counterparties (other banks, pension funds
and insurance companies, etc.)
• professional investment customers (typically very
large corporate customers)
• retail clients (all other customers).
Based on objective criteria, the categorisation impacts
the level of protection afforded to you as an investor –
that is the information and advice you are entitled to
receive from us. Retail customers enjoy the highest level
of protection, professional customers are afforded less
protection and eligible counterparties are generally not
afforded investor protection.
To some extent you may be able to change your category
– in such case you should contact your adviser.
1.2. EXPERIENCE AND KNOWLEDGE
If you are a retail client, we will assess what types of
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This is a translation of the document “Betingelser
for handel med værdipapirer” in the Danish language.
In case of discrepancies, the Danish version
prevails.
securities you have knowledge of and experience of
trading in – we call it your trading range. In order to
identify your trading range and determine the securities
that would be appropriate for you, we require some
information.
After we have received the necessary information, you
will be notified of the types of securities included in your
trading range.
We recommend that you do not trade in securities not
included in your trading range without seeking advice.
Such securities may be associated with risks unknown
to you.
1.3. MARKET ABUSE (INSIDE INFORMATION AND
PRICE MANIPULATION)
Please note that you are not permitted to buy, sell or
invite others to buy and sell securities if you have inside
information that may be of importance to the trade.
Nor are you permitted to trade in a manner that are
likely to influence the price of a security in a direction
deviating from the value of the relevant security in the
market.
Violation of the prohibitions against misuse of inside
information and price manipulation is punishable by fine
or imprisonment.
2. WHEN TRADING
You can contact us either by telephone or in person if
you want to seek advice.
If you do not wish to speak to an adviser, we recommend
that you use our self-service systems. These systems
ensure speedy identification of you and proper execution
of your trading order.
However, please note that not all securities we offer for
trading can be traded through the self-service systems.
If you place orders by letter, e-mail or fax, you should
expect longer processing times, because we must check
the order documentation manually. You can shorten the
processing time by calling us, when you transmit the order.

We are entitled to record telephone conversations about
securities trades. Such recordings may serve as proof of
any agreements made. The recordings are for our own
use only.
If you place an order outside the bank’s normal opening
hours, such order will be executed on the next following
business day. You can find the bank’s normal opening
hours at www.danskebank.dk.
Your order will be binding upon receipt by the bank, and
consequently you will not be able to delete or withdraw
the order, unless it has not yet been executed. If you use
the ”delete order” command in a self-service system, you
should be aware that the bank may have executed your
order before your request for deletion is processed. If
your order has already been executed, your request for
deletion cannot be met.
We will execute your order according to the terms
described for each type of order and in accordance with
our Order Execution Policy. The policy applies to retail
customers and professional customers.
If changes have been agreed in the way we are permitted
to execute an order when the order is placed, we
may not be able to execute your order in whole or in
part according to the principles defined in our Order
Execution Policy.
You can find our Order Execution Policy on the bank’s
website.
2.1. ORDER TYPES
We offer the following order types
Market orders
• Market orders with limit (limit order)
• Market orders without limit (market order)
• Immediate trade
Average price orders
The short forms ”limit order” and ”market order” are used
in e.g. e-banking and on contract notes.
2.1.1 MARKET ORDERS WITH
AND WITHOUT LIMIT
We choose the trading venue and the order execution
method that is most advantageous to you.
For certain securities traded in several trading venues,
we may seek to execute your market order in one or
more transactions on these trading venues. We may
use IT systems that mainly execute your order on the
basis of price and costs in selected trading venues
with sufficient liquidity and where we expect to obtain
the best available price in accordance with our Order
Execution Policy.
The trades are made or agreed in our name, but for your
account. Thus, trades are executed on a commission
basis.
You may instruct that your order applies for a period of
time by selecting an expiry date
Limit
You have the option of placing your order as a ”market
order with limit” or as a ”market order without limit”.
If you choose a ”market order with limit”, it means that
you must set a limit price.
Choose this option if you want to buy or sell at a specific
price. There may be restrictions on individual securities
as to how much a limit may deviate from the prevailing
market price.
When limiting an order, you also agree that your limit
order will not be published if it cannot be executed
immediately under prevailing market conditions.
We, or the broker selected by us, seek to execute the
order when the price corresponds to the price set by
you.
If you choose a ”market order without limit”, we will set
the limit price at which we will seek to execute the order
based on the applicable market conditions. If we decide
for the order to be executed through another broker, the
limit may be set by that broker.
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Trading venues
The bank selects different trading venues considered
capable of providing the best possible order execution.
A list of the principal trading venues we use and details
of our selection criteria are available in our Order
Execution Policy financial instruments. You can find the
policy on our website.
We may choose to trade directly in a regulated market
if we are a member of such market. (This is the case for
NASDAQ OMX Copenhagen for example).
Furthermore, we can choose to trade in other organised
markets, multilateral trading facilities (MTFs), internal
crossing networks, including dark pools and similar
trading facilities. Trading may be effected either directly
or through a trading venue.
We may act as a counterparty (buyer or seller) to a trade
executed in a regulated market, MTF or another market
(contracting in our own name). The contract note will set
out that the trade was made on the relevant market with
the bank as the counterparty.
We can also execute your order outside a trading venue.
This is referred to as over-the-counter trading (OTC). In
such case, it is either a immediate trade directly with us
(see 2.1.2) or a transaction with another broker selected
by us. If a broker is the buyer or seller in the trade, the
contract note will state that the trade was OTC.
In addition to executing the trade directly with himself,
the selected broker can choose to execute the trade on
or through a market or trading facility.
For certain securities, your order will not be executed as
a purchase/sale, but as a subscription/redemption with
a provider. This is the case when a relevant security is
offered for the first time (issue). Also, units in collective
investment schemes can be subscribed for or redeemed
on a ongoing basis with the provider of the relevant
collective investment units instead of being traded
in a market. Subscription and redemption is effected
according to the rules of the relevant prospectus.
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Time of execution
We will seek to process your market order as quickly as
possible. If an order is placed outside the space of time
when we process orders in the relevant security, we will
not seek to execute the order until we again open trading
in the relevant market.
Order execution
When the bank or a selected broker executes a market
order, the rules governing trading of the relevant market
or broker will apply.
Each market or broker offers different options for
trading market orders. The bank or the selected broker
determines on your behalf how to use these options.
When we seek to execute a trading order
• the order may only be executed to the extent that
it can be matched in whole or in part with bids or
offers.
• the order may be split up or aggregated and traded at
different prices during the trading day
There may be different reasons why an order is not
executed in whole or in part. The most common reason
is that price developments do not allow for trading at
the limit price indicated or due to a lack of liquidity in
the relevant security. If your order is placed late in the
trading day, there is limited time in which to trade, and
thus even securities that are normally liquid may not
have the required liquidity.
2.1.2. PRINCIPAL TRADING (IMMEDIATE TRADE),
INCLUDING SYSTEMATIC INTERNALISATION
We offer to execute orders as principal (immediate trade)
in a range of Danish and international securities. The
bank determines on an ongoing basis the securities
offered and the maximum amounts available for trading.
In a immediate trade, you trade with the bank as the
buyer or seller (counterparty) at a price we determine. If
you accept the price, the trade is concluded.
Immediate trade eliminates the risk of price fluctuations
that may occur from the time you place the order until
execution. Furthermore, it provides assurance that the
order is executed in full.

We reserve the right to restrict the execution of orders
in shares if we receive a large number of orders for
the same shares at the same time from one or more
customers.
Please note that you are not permitted to influence
the price by placing conflicting orders yourself in the
market in which you wish to buy or sell securities.
Several judgments given in the Danish High Court
have established that such conduct constitutes
price manipulation which is a violation of the Danish
Securities Trading Act. Price manipulation is punishable
by fine or imprisonment.
In relation to certain principal trading, supplementary
rules on systematic internalisation apply. See below.
Determination of prices of principal tranding (immediate
trade)
Our prices for principal trading are equal or more
favourable than the prices we can obtain ourselves on
the relevant market – taking into account time, volume
and trading conditions.
For securities traded on NASDAQ OMX Copenhagen,
Stockholm and Helsinki as well as Oslo Børs, the bank
will determine a price within or equal to the best bid or
offer on the relevant markets.
If you trade after closing on these markets, we determine
the price for principal trading on the basis of the closing
price. However, the price will be changed if events
affecting prices have occurred after the market has
closed.
For other securities and in the event that no current
bids/offers are available on the relevant markets, we
determine the price for principal trading taking into
account current market conditions, including
• supply and demand
• the price level of the most recent trades
• events affecting the price – domestic as well as
international
• available information about the issuer and the
issuer’s line of business
• the price developments of similar securities –
(bonds/fixed income only)
• price information from issuers (only applicable to
units of collective investment schemes, e.g. units of
investment funds).
Unless otherwise agreed, we decide in which currency
the immediate trade in international securities should be
settled.
We update our bid/ask prices for such equities on an
ongoing basis. In unusual market conditions, we may
withdraw our bid/ask prices.
Specific information about systematic internalisation
We are required to publish our prices of immediate
trades on an ongoing basis for a number of equities with
a large trading volume in a regulated market. This is
due to the fact that we frequently, systematically and in
an organised manner buy or sell securities and match
customers’ orders outside a regulated market – which
is also referred to as ’systematic internalisation’. Your
contract note will state if the immediate trades was
executed according to the rules governing systematic
internalisation.
A list of these equities are available at www.
danskebank.dk.
Immediate trades in equities executed according to the
rules governing systematic internalisation are effected
at the bank’s published price of real-time transactions
applicable on receipt of your order. Caps apply to such
trades. The caps and the prices of immediate trades are
available at www.danskebank.dk.
2.1.3 AVERAGE PRICE ORDER
Average price orders is an option offered by us for
trading in certain securities. It implies settlement
at an average price. You trade with the bank as the
counterparty and trading venue.
2.1.3.1 AVERAGE PRICE TRADING
BASED ON PRICES QUOTED ON
NASDAQ OMX COPENHAGEN
You can trade at average prices in selected shares and
units of collective investment schemes admitted to
trading on NASDAG OMX Copenhagen.
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The bank acts as the buyer or seller in average price
trades. The order is executed on or before the first
business day after receipt by the bank of your order.
We settle the trade at the weighted average price
calculated by NASDAQ OMX Copenhagen at the closing
of the trading day plus/less the bank’s usual premium/
discount. The bank’s premiums/discounts are available
at www.danskebank.dk.
Where the relevant share or unit is not traded regularly,
we can determine a price. The same applies if no bid/ask
prices have been provided in the execution venues of
NASDAQ OMX Copenhagen at the time of trading on the
relevant trading day.
The price is determined taking into account
• supply and demand
• the price level of the most recent trades
• events affecting the price – domestic as well as
international
• available information about the issuer and the
issuer’s line of business
• most recent price information from issuers (only
applicable to units of collective investment schemes,
e.g. units of investment funds).
If the trading volume on the execution venue of NASDAQ
OMX Copenhagen on the trading day is less than the
size of the order, the bank is under no obligation to settle
the order.
Nor do we have any obligation to settle your order if we
can only procure the securities at a price exceeding
the calculated, weighted average price at closing on the
trading day.
2.1.3.2. OTHER AVERAGE PRICE TRADES
If your order constitutes a significant part of the average
daily trading volume in the relevant security, we may
offer, by individual agreement, to execute the order at a
calculated volume-weighted average price. A volumeweighted
average price transaction is executed based on
trading during a specific period of time on a given trading
day – e.g. the average price of all trades in the relevant
security between 10 am and 2 pm in a selected market.
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2.1.4. TRADING IN SPECIAL SECURITIES
To some extent we offer you the option of trading in
securities not admitted to trading in regulated markets
or other markets – including mortgage deeds – with the
bank acting as the buyer or seller at prevailing market
prices. Our prices correspond to the prices we are able
to obtain ourselves taking into account time, quantity
and trading terms.
2.2. CANCELLATION OF MARKET ORDERS
An order is cancelled automatically if it cannot be
completed on the day it is placed or on the next following
trading day provided that the order is placed at a time
when we do not offer trading in the relevant security.
However, this does not apply where a period of time has
been agreed for the order. See paragraph 2.1.1.
2.2.1. SPECIAL MARKET SITUATION
The bank reserves the right not to execute an order in
the event of a special market situation.
2.2.2. OBSERVATION LISTS AND SUSPENSION OF
TRADING
If a security is placed on the observation list or is
suspended from trading in the relevant regulated market,
we will cancel all orders in such security when no trade
has yet been concluded.
2.3 CANCELLATION OF TRANSACTIONS MADE
Trades generated by mistake or accident can be
cancelled according to the rules of the market in
question or other regulations. An example of such
cancellation could be if a trade is executed at a price
deviating strongly from the actual market price. This
applies whether or not trading is happening on or off the
market.
2.4 FOREIGN EXCHANGE
In connection with the execution of a trade in securities
traded in foreign currency, we exchange the required
amount unless otherwise agreed.
Generally, such exchange is effected directly in
continuation of the trade at the bank’s spot rate (rate
changing regularly during the day) plus a charge on the
purchase of foreign currency or less a deduction upon
the sale of foreign currency.

If you trade through an adviser, you can instruct the
adviser to postpone such exchange in relation to a
specific trade until the rate is determined based on the
quotations of the Danish central bank two days prior
to the settlement date (value date) plus/less a charge/
deduction.
2.5. SETTLEMENT NOTE
We will send a note stating the settlement price, trading
venue, order type and other information for each trade.
We will dispatch the note not later than the first weekday
after the execution of the trade.
2.6. DELIVERY AND PAYMENT (SETTLEMENT)
Settlement means delivery and payment in connection
with securities trading.
For Danish securities, the settlement date is the third
business/trading day after the date of execution of the
trade.
With regard to international securities, different times
of payment and settlement rules apply. We cannot sell
international securities until they have been checked
and registered by the bank’s relevant foreign business
partner.
The prices of custody of international securities are
available at www.danskebank.dk.
The bank retains the ownership of the securities bought
by you until they have been paid for, and the bank may
use securities being settled as collateral under the rules
of law to that effect.
When you buy securities, you acquire unconditional
ownership of the securities purchased only if we receive
final payment on the settlement date.
When you sell securities, our payment of the settlement
amount is conditional on us acquiring unconditional
ownership of the securities on the settlement date.
If a trade is placed with a counterparty who cannot
deliver on time, we will seek to ensure that the
transaction is executed as quickly as possible. If this
is not possible, we have no obligation to independently
execute the trade since we are not the counterparty.
2.7. TRADING COSTS
We charge brokerage for all trades.
In general, brokerage fees are lower when trading
through our selfservice channels than through our
departments. The rates are available at
www.danskebank.dk.
The brokerage rates are subject to change according
to the same rules as those applicable to changes to
our interest rates and fees as per the bank’s General
conditions.
The bank’s price of immediate trades in bonds admitted
to trading on NASDAQ OMX Copenhagen may deviate
by a premium/discount of up to 0.50 points from the
quoted price. This is due to the fact that we determine
a price of immediate trades reflecting the market of the
specific bond at the time of trading in relation to the size
of the order and the trading volume in the market.
Trading costs in the form of a premium/discount to the
price are not calculated for immediate trades in equities.
However, we charge trading costs as a premium/
discount to the price of equities, investment units and
bonds traded in average price trades.
3. GENERAL ISSUES
Our terms and conditions are subject to change from
time to time with effect for future trades. In the event of
significant changes to the service(s) provided to you, you
will receive reasonable advance notice by letter - either
by ordinary mail or electronically.
The updated terms and conditions are available in
Danske eBanking, at www.danskebank.dk, or from our
branches on request.
Unless otherwise agreed with the bank, these terms
and conditions will apply in conjunction with the bank’s
General Conditions.
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18313 · 2012.02 · Danske Bank A/S · CVR-nr. 61 12 62 28 – København