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GENERAL PROVISIONS
Art. 1. The Policy for Performance of Customer’s Orders (the Policy) is developed in compliance with the requirements of the Markets in Financial Instruments Act (MFIA) and Ordinance № 38 on the Requirements to the Activity of Investment Intermediaries (Ordinance № 38).
Art. 2. By the implementation of the present policy, BULBROKERS guarantees that in respect of the investment services and activities provided on account of customers the intermediary shall act honestly, fairly and as a professional, in accordance with the best interests of its customers.
Customers
Art. 3. Customer of BULBROKERS shall be any natural person or legal entity enjoying the investment and/or additional services provided by the intermediary.
Art. 4. BULBROKERS classifies its customers as professional ones, non-professional ones and „eligible counterparty” in accordance with the Rules for Customer Categorization.
Art. 5. Professional shall be a customer having experience, knowledge and skills sufficient to undertake a self-dependant investment decision and properly assess the risks related to investing and who meets the criteria under the Rules for Customer Categorization.
Art. 6. Customers that do not meet the requirements under the previous articles shall be classified as non-professional ones.
Art. 7. BULBROKERS accepts as an eligible counterparty: an investment intermediary, credit institution, insurance company, collective investment scheme, managing company, pension fund, pension-andsocial- security-fund, other financial institutions, the persons under art.4, par.1, item 11 and 12 of the Markets in Financial Instruments Act, governments of states, state authorities governing a state debt, central banks and international institutions, as well as such subjects from third states, if they explicitly expressed a desire to be treated as such.
Art. 8. All customers of BULBROKERS shall be equally treated regardless of their categorization.
Field of Application
Art. 9. The present policy shall apply to all customers of BULBROKERS.
Art. 10. The Policy shall apply to the following investment services:
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Acceptance and forwarding of orders in relation to financial instruments;
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Execution of orders on account of a customer;
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Portfolio management;
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Services related to foreign means of payment.
Art. 11. Execution of an order on account of a customer shall be the performance of activity intended to enter into a transaction for the purchase or sale of one or more types of Financial Instruments on behalf and on account of the customer.
Art. 12. Portfolio management shall be management of: · investment portfolios, upon a customer’s order, which is to be carried out at the discretion of BULBROKERS for each single customer; · the investment portfolios including one or more Financial Instruments.
Art. 13. Upon special instructions on the part of the customer, BULBROKERS shall execute orders or specific aspects thereof following predominantly these instructions. By complying with the instructions, BULBROKERS has fulfilled its obligation to act for the achievement of best result for its customers.
Art. 14. All special customer instructions may obstruct the intermediary to undertake the necessary acts for achievement of the best result upon execution of the customer’s orders in compliance with the Policy for Execution of Orders, in respect of that part of the order, to which such special instructions refer.
Art. 15. If, in the opinion of BULBROKERS, such special order significantly deviates from the market situation, BULBROKERS may, in the interest of the customer, execute not complying with the instruction and applying the present Policy.
Art. 16. The Policy shall not apply to the cases of submission of customer’s orders for execution by a third party.
Financial Instruments
Art. 17. BULBROKERS shall accept, forward and execute orders for the following types of financial instruments: · securities; · money market instruments; · shares of undertakings for collective investment; · derivatives.
Art. 18. Securities are a type of financial instruments, which may be book-entry ones and definitive ones.
Art. 19. Book-entry securities are transferable rights traded on the capital market and registered in accounts in the Central Depositary or in foreign institutions performing depositary activities.
Art. 20. Definitive securities are documents materializing rights traded on the capital market.
Art. 21. Rights are securities entitling to subscription of a certain number of shares in relation to an adopted decision for increase of the capital of a public company.
Art. 22. Securities may be:
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shares of companies;
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securities of legal entities, share equivalents in capital companies, personal companies and other legal entities;
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share depositary receipts;
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bonds;
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other debt securities;
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depositary receipts for debt securities;
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other securities entitling to acquisition or sale of any of the listed securities or which result in cash payment determined by securities, currency exchange rates, rates of interest or profitability, goods or other indices or indicators.
Art. 23. State securities (SS) are transferable rights registered in accounts in the Bulgarian National Bank or in a sub-depositary of SS or in foreign institutions performing depositary activities.
Art. 24. Money market instruments are those that are normally traded on the money market, such as: · short-term SS (treasury bills); · depositary certificates; · commercial securities.
Art. 25. Shares of undertakings for collective investment are financial instruments issued by the collective investment schemes such as contractual funds and investment companies (CIS), which express the rights of their holders in the CIS assets.
Art. 26. Derivatives are derivative contracts over securities, currency, rates of interests, incomes, other derivative instruments, goods, changes in the climate, cargo tariffs, prices of emission trading scheme quotas, official economic statistic indicators, the obligations under which may be by cash payment or by delivery.
Art. 27. The derivatives, with which BULBROKERS performs transactions, shall be: options, futures, swaps, forward contracts, contracts for difference, derivative financial instruments for transfer of credit risk.
Art. 28. Option is a derivative expressing the right of purchase/sale of a certain number of financial instruments at a price fixed in advance until the expiration of a certain deadline or on a certain date.
Art. 29. Futures are derivatives expressing the right of and obligation for purchase/sale of a certain number of financial instruments at a price fixed in advance on a certain date.
Art. 30. Swap is an agreement between contracting parties on the financial markets, which is expressed in exchange of cash flows based on a specific absolute value for an agreed period of time.
Art. 31. Forward contracts are contracts for future delivery of a certain financial instrument or articles on a certain date at a specific price or profitability.
Art. 32. Contract for difference is a derivative expressing the right to receive/the obligation to pay the difference between the market value of certain number of financial instrument and the price fixed in advance in the contract.
Art. 33. Payment instruments shall not be considered securities and money market instruments.
Places for Execution of Orders
Art. 34. The places where BULBROKERS shall execute the orders of its customers shall be: a regulated market and a multilateral trading system.
Art. 35. Regulated market is a multilateral system organized and/or managed by a market operator which meets or assists in the meeting of the interests in purchase and sale of financial instrument of multiple third parties.
Art. 36. Multilateral trading system is a multilateral system organized by an investment intermediary or market operator, which combines counter orders of third parties for purchase and sale of financial instruments within the system.
Art. 37. Customer’s orders may be executed outside the regulated market and the multilateral trading system by BULBROKERS, when it acts as a systematic participant. Systematic participant is such investment intermediary, which trades on its own account with financial instruments on an organized, periodic and systematic basis.
Art. 38. Customer’s orders may be executed outside the regulated market and the multilateral trading system by BULBROKERS, when it acts as a market-maker. In this function BULBROKERS shall trade on its own account by purchase and sale of financial instruments with its own funds at prices determined by it.
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