Please find below the answers to some questions regarding MIFID/PRIIPS regulations.

Transcription

1 Please find below the answers to some questions regarding MIFID/PRIIPS regulations. MIFID II How do you classify customers when it comes to... Retail, professional or eligible counterparty? During the client onboarding process clients receive a MIFID classification (retail, professional or eligible counterparty) according the MiFID II requirements. Manufacturer, Co-Manufacturer, or Distributor Commerzbank is manufacturer for the products and will assume the MiFID II product governance responsilities of a manufacturer unless agreed otherwise. Will you conduct an annual KYD review? Do you need to do this before 3 Jan 2018? Commerzbank EMC already carries out periodic Know Your Distributor reviews. What will identify an EMT/EPT or other relevant document for Target Market Data for a relevant Structured Product? ISIN or other? [NB the European MiFID Templates ( EMT ) and European PRIIPs Template ( EPT ) are formats containing target market information (EMT) or KID information (EPT) currently discussed in the industry] Information on Target Market Data for a product will be available via different sources. The ISIN for the relevant product will be a sufficient identifier to find this information in any of the sources. We would like to listen to all distributors and clients with regards to what their preferred sources to receive this information will be to ensure such information can be made available to them. What databases are you using in regards to Target Market Data? Commerzbank EMC will provide the Target Market Data information for all the investment products that it manufactures via different sources which include the Termsheet for the product and as well third party databases like RegXchange, WM Daten and others. How will we access Target Market Data and product Governance document? For publicly listed products, Target Market Data and KIDs will be available via Commerzbank public websites, third party Data contributors like RegXchange/ WM Data or the Exchange these products are listed as well as directly via the Third Party Data contributors or the Exchange. Documentation on our Product Governance will not be published as this is not required by the regulator.

2 For relevant private placements, Target Market Data for each investment product will be available on the product s termsheet which can be accessed via Commerzbank public websites or upon request. Do Clients need to be a member of the relevant database to access this data? This information depends on your relationship with the exchanges and/or the third party data contributors (i.e. RegXchange). Commerzbank EMC will also endeavour to make this information available when relevant on the public web pages. Do Clients need to upload or download files in regards to Target Market Data? The distributor needs to provide Target Market data + KIDs to their clients. They do not have to upload files for Commerzbank in regards to target market data. In the event that a distributor sells our products to their clients outside of our defined target market for the products, they must subsequently inform Commerzbank. How will Clients report this information to the Issuer/Manufacturer and when? Commerzbank is currently liaising with banking associations and other market participants on this reporting process. Research charges, will Clients be charged for research? Commerzbank implemented a specific hotline ( ) and mail box (MiFID2Research@commerzbank.com) for his Research clients. We are happy to forward your question to our Research colleagues. Are you intending to agree new governing agreements with your Distributors and Intermediaries to reflect the new regulatory obligations or MiFID II Product Governance and PRIIPS? Yes, Commerzbank will be contacting all of its Distributors and Intermediaries to update and/or supplement existing agreements. MIFIR Is Commerzbank intending to be a Systematic Internaliser and if so from what date? Commerzbank intends to self-declare as a Systematic Internaliser (SI) from 3rd Jan 2018 for the following products; Shares and Depository Receipts ETFs Securitised Certificates and Warrants Will Commerzbank provide post trade transparency on behalf of clients? Commerzbank will provide transparency under Article 20 and 21 on instruments for which it is a Systematic Internaliser. In addition to this Commerzbank will offer an Assisted Reporting service for instruments where Commerzbank is not an SI. Further details on this service will follow. Will Commerzbank provide transaction reporting under Article 26? Commerzbank will not be offering transaction reporting services. Will Commerzbank be able to assist clients in complying with the Share Trading Obligation? Commerzbank intends to declare as an SI for Shares and will therefore be an acceptable execution venue under the Share Trading Obligation. What are the implications of trading OTC against a Systematic Internaliser? Similarly to trading On-Venue, where Pre and Post Trade Transparency is provided by the exchange or MTF, in case of trading off venue with an SI, Pre trade transparency would be provided by the SIs whilst Post Trade transparency would also be provided by the SI to a trade

3 What are the implications to trading on Venue or Off Venue? A comparison: On Venue Off Venue SI or Bilateral Exchange MTF SI Non-SI Pre Trade Transparency Yes Yes Yes no Post Trade Transparency Yes Yes Yes generally seller has to report Tick size regime Yes By Venue not applicable not applicable Order fills multiple one one one Additional execution costs Yes Yes generally no generally no Settlement CCP By Venue bilateral bilateral PRIIPs Will you produce KIDs for existing products prior to 3 Jan 2018? Commerzbank EMC will produce KIDs for all products Commerzbank EMC deems relevant following the implementation of the PRIIPs regulation regardless of when they were traded as long as they are still required. What will identify a KID document for a relevant Structured Product? ISIN? The ISIN for the relevant product will be a sufficient identifier to find this information What database are you using in regards for KID documents? For publicly listed products, KID documents, will be available via Commerzbank public websites, third party Data contributors For private placements KID documents will be available via Commerzbank public websites and third party Data contributors How will Clients access the KID document and how often is a KID updated? For publicly listed products KID documents will be available via Commerzbank public websites, third party Data contributors For private placements KID documents will be available via Commerzbank public websites and third party Data contributors KIDS will be re-calculated daily and re-published should there be a requirement to republish them. Will you do a European Language translation of the KID? Commerzbank EMC will make European language versions of the KIDs available to those products where a KID is required. Do Clients need to be a member of the relevant database to access KID documents? This information depends on your relationship with the exchanges and/or the third party data contributors (i.e. RegXchange). Commerzbank EMC will also endeavour to make this information available when relevant on the public web pages for the publicly listed products.

4 Do Clients need to send or receive files in regards to KID documents? The distributor needs to provide Target Market data + KIDs to his clients. The distributor has to receive the manufacturer s Target Market data from external data providers or Commerzbank. Will you be able to produce a KID for the offer side upon request and not only bid side in the secondary market? For publicly listed products, KID documents, will be available via Commerzbank public websites, third party Data contributors For private placements, KID documents, will be available via Commerzbank public websites and third party Data contributors Upon request we will consider the production of KIDs outside the above whilst we reserve our right not to increase the size of certain products if needed. A KID is also not necessary if we provide only a price to buy a security from our client and do not offer a full quote.

5 Commerzbank AG Headquarters Kaiserplatz Frankfurt am Main Postal address Frankfurt am Main Germany Tel Frankfurt Branch Commerzbank AG Mainzer Landstr. 153 DLZ Gebäude 2 Händlerhaus Frankfurt am Main Germany Tel London Branch 30 Gresham Street London EC2V 7PG United Kingdom Tel Disclaimer This document has been created and published by the Commerzbank AG, Frankfurt/Main orthe group companies mentioned in the document ( Commerzbank ). This is a financial promotion/marketing communication (together communication ). It isnot investment research or financial analysis as these terms are defined in applicableregulations and has not been prepared by a research analyst. The views in this communication may differ from the published views of Commerzbank Corporate Clients Research Departmentand the communication has been prepared separately of such department. This communication may contain short term trading ideas. Any returns or future expectationsreferred to are not intended to forecast or predict future events. Any prices provided here in(other than those that are identified as being historical) are indicative only, and do notrepresent firm quotes as to either size or price. This communication is for information purposes only. The information contained herein does not constitute the provision of investment advice. It is not intended to be nor should it be construed as an offer or solicitation to acquire, or dispose of, any of the financial instruments and/or securities mentioned in this communication and will not form the basis or a part of any contract. Potential counterparties/distributors should review independently and/or obtain independent professional advice and draw their own conclusions regarding the suitability/appropriateness of any transaction including the economic benefit and risksand the legal, regulatory, credit, tax and accounting aspects in relation to their particular circumstances. Levels, bases and relief from taxation may change from time to time. Any information in this communication is based on data obtained from sources believed by Commerzbank to be reliable, but no representations, guarantees or warranties are made by Commerzbank with regard to the accuracy, completeness or suitability of the data. The past performance of financial instruments is not indicative of future results. No assurance can be given that any financial instrument or issuer described herein would yield favourable investment results. This communication is intended solely for distribution to Professional Clients and/or Eligible Counterparties of Commerzbank. It is not intended to be distributed to Retail Clients or potential Retail Clients. Neither Commerzbank nor any of its respective directors, officers or employees accepts any responsibility or liability whatsoever for any expense, loss or damages arising out of or in any way connected with the use of all or any part of this communication. Commerzbank and/or its principals or employees may have a long or short position or may transact in financial instrument(s) and/or securities referred to herein or may trade in such financial instruments with other customers on a principal basis. The information may have been discussed between various Commerzbank personnel and such personnel may have already acted on the basis of this information (including trading for Commerzbank s own account or communication of the information to other customers of Commerzbank). Commerzbank may act as a market maker in the financial instruments or companies discussed herein and may also perform or seek to perform investment banking services for those companies. No part of this communication may be reproduced, distributed or transmitted in any manner without prior written permission of Commerzbank. This communication or the manner of its distribution may be restricted by law or regulation in certain countries. Persons into whose possession this document may come are required to inform themselves about, and to nobserve any such restriction. By accepting this communication, a recipient hereof agrees to be bound by the foregoing limitations. This communication is issued by Commerzbank AG and approved in the UK by Commerzbank AG London Branch, authorised by the German Federal Financial Supervisory Authority and the European Central Bank. Commerzbank AG London Branch is authorised and subject to limited regulation by the Financial Conduct Authority and Prudential Regulation Authority. Details about the extent of our regulation by the Financial Conduct authority and Prudential Regulatory Authority are available on request. Copyright Commerzbank All rights reserved.