2017 Annual Best Execution Report This report was published pursuant to Article 65(6) of the MiFID II Delegated Org Regulation

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1 Kite Lake Capital Management (UK) LLP 2017 Annual Best Execution Report This report was published pursuant to Article 65(6) of the MiFID II Delegated Org Regulation

2 Quantitative Report Equities - Shares & Depositary Receipts - Band 1&2 terms of trading volumes (descending order) Goldman Sachs International N9FJ29MC81JI74MJE92 35% 5% 0% Churchill Capital UK Limited SC6TLNRKIH33 27% 29% 0% CM-CIC Market Solutions DAILATLCBDJ67 17% 35% 0% Kyte Broking Limited 1ZU7M6R6N6PXJ6V0C83 6% 4% 0% Religare Capital Markets PLC (Acquired by Edelweiss Group) 6% 5% 0% Equities - Shares & Depositary Receipts - Band 3&4 Joh. Berenberg, Gossler & Co. KG UC2OD7II24Z667 23% 6% 0% Kyte Broking Limited 1ZU7M6R6N6PXJ6V0C83 20% 3% 0% UBS Limited REPIEJN7XZHSUI0N355 16% 60% 0% Investec Bank Plc 84S0VF8TSMH0T6D4K848 8% 6% 0% J.P. Morgan Securities PLC K6Q0W1PS1L1O4IQL9C32 5% 2% 0% Equities - Shares & Depositary Receipts - Band 5&6 Cantor Fitzgerald Europe KM6VUHPKQLQX53 23% 7% 0% UBS Limited REPIEJN7XZHSUI0N355 18% 23% 0% Goldman Sachs International N9FJ29MC81JI74MJE92 16% 3% 0% Churchill Capital UK Limited SC6TLNRKIH33 11% 16% 0% Piper Jaffray Ltd LHD1TOE4JE90 6% 11% 0% Kite Lake Capital Management (UK) LLP 2017 Annual Best Execution Report 2

3 Quantitative Report Debt instruments - Bonds Swedbank AB (Publ) M312WZV087LUC % 15% 0% Goldman Sachs International N9FJ29MC81JI74MJE92 21% 35% 0% SC Lowy Financial (HK) Limited S5OKNBNULX1O50 19% 5% 0% Stifel Nicolaus Europe Limited BVEFNZ8UPKL03 18% 25% 0% The Seaport Group Europe LLP MLD2U3GEMHS70 9% 5% 0% Contracts for difference N Churchill Capital UK Limited SC6TLNRKIH33 20% 29% 0% Investec Bank Plc 84S0VF8TSMH0T6D4K848 16% 13% 0% UBS Limited REPIEJN7XZHSUI0N355 14% 19% 0% Joh. Berenberg, Gossler & Co. KG UC2OD7II24Z667 9% 6% 0% Cantor Fitzgerald Europe KM6VUHPKQLQX53 6% 1% 0% Equity Derivatives - Options admitted to trading on a trading venue terms of trading volumes (descending order) Cantor Fitzgerald Europe KM6VUHPKQLQX53 87% 75% 0% Olivetree Securities LTD WJG33TNCFVZK61 10% 6% 0% UBS Limited REPIEJN7XZHSUI0N355 3% 19% 0% Currency derivatives - Forwards terms of trading volumes (descending order) UBS Limited REPIEJN7XZHSUI0N355 98% 77% 0% Goldman Sachs International N9FJ29MC81JI74MJE92 2% 23% 0% Kite Lake Capital Management (UK) LLP 2017 Annual Best Execution Report 3

4 Quality of Execution Report Classes of instruments included in this report Classes of instruments included in this report Comments Equities (Band 1, 2, 3, 4, 5 & 6) N Bonds Bonds accounted for a negligible amount of the Firm s trading activities in 2017 Contracts for difference N Equity Derivatives - Options admitted to trading on a trading venue Currency Derivatives - Forwards Kite Lake Capital Management (UK) LLP 2017 Annual Best Execution Report 4

5 Quality of Execution Report Summary of analysis Conclusion Execution factors Close links, conflicts of interest and common ownership with respect to execution venues The relative importance of the execution factors, was determined by the following execution criteria: The probability of execution, which will assess which brokers are capable of executing the order on the required terms. In normal market conditions however, this is a relatively straightforward exercise that will produce a range of equally ranked execution options for further consideration under the remaining execution factors. The best result for the client in terms of the total consideration for the trade, defined as the total price obtained minus any costs or fees. This analysis will include the implicit costs of the trade, such as slippage and market impact. Other execution factors do not typically determine the way a trade is executed, although on occasion where there are specific relevant circumstances these factors may be escalated in prioritisation. These situations are listed below. - Large Transactions - Thinly Traded markets - Volatile markets - Short-term Opportunities - Market crises - Niche or specialist markets - Overseas or hard to access markets - Linked transactions - Regulatory compliance Close links The Firm has no close links to report. Conflicts of interest The Firm has no conflicts of interest to report. Common ownerships The Firm has no common ownership to report. The relative importance given to the execution factors was in line with the Firm s Best Execution Policy (December 2017). Bonds accounted for a negligible amount of the Firm s trading activities in Daily post trading compliance checks are in place to ensure trades are executed within the intraday price range. Close links Conflicts of interest Common ownerships Kite Lake Capital Management (UK) LLP 2017 Annual Best Execution Report 5

6 Quality of Execution Report Summary of analysis Conclusion Specific arrangements with execution venues regarding payments made or received, discounts, rebates or nonmonetary benefits received The Firm has no specific arrangements to report. Factors leading to a change in the list of execution venues listed in the order execution policy There were no changes to the list of execution venues/brokers in the Firm s Order Execution Policy. Differentiation across client categories - all of the Firm s clients are professional clients. Use of data / tools relating to quality of execution The Firm has not used data / tools relating to quality of execution. Use of consolidated tape provider output The Firm has not used output from consolidated tape providers. Providers do not at present exist within the EU Use of DEA The list of top brokers for these classes of instrument includes brokers who provide the Firm with direct electronic access to execution venues. These brokers are: Goldman Sachs International, UBS Limited and Churchill Capital. Trades executed through DEA in 2017 accounted for a negligible amount of the Firm s trading activities in 2017 Kite Lake Capital Management (UK) LLP 2017 Annual Best Execution Report 6