EMEA -

Markets in Financial Instruments Directive

The Markets in Financial Instruments Directive (MiFID I) came into force on November 2007. The aim of MiFID I was to harmonise investor protection regulation and increase competition in the European Union (EU) financial markets. With the evolution of investment products, technological advances and the financial crisis of 2008, an EU review of MiFID I led to the decision to enhance the regulatory framework through the implementation of the Markets in Financial Instruments Directive Two (MiFID II), which came into force on 3 January 2018.

The purpose of this information is to outline important aspects of the legislation. This information is not exhaustive and does not constitute legal or regulatory advice and we recommend that you obtain your own advice to assist in understanding how MiFID II will impact your business.

SMBC is a global bank incorporated in Japan. The entities in scope for MiFID II are SMBC, which operates in the European Economic Area (EEA) through its branches, and its subsidiaries SMBC BI, SMBC EU, SMBC Nikko and SMBC DP.

Objectives of MiFID II

Strengthen investor protection by enhancing organisational and conduct of business requirements
Increase the transparency and efficiency of financial markets and reduce systemic risks by strengthening market structures and extending the pre- and post-trade transparency regime as well as trading obligations requirements
Introducing a third country equivalence regime to allow investment firms take advantage of potential passporting opportunities.

SEND US A MESSAGE

LEIs
SIs
Legal Resources
Ex-ante Costs & Charges
Allocation Process
RTS 27
RTS 28

LEGAL ENTITY IDENTIFIERS

A legal entity identifier (LEI) is a unique, alpha-numeric code of 20 characters which identifies legal entities that engage in financial transactions with investment firms in the EEA. When an LEI code is allocated, it is included in the Global LEI Foundation database. This enables every legal entity or structure that is party to a relevant financial transaction to be identified in any jurisdiction.

You will need to have an LEI to trade with SMBC Group for in-scope MiFID II transactions within the EEA, irrespective of where you are located. You must register with an authorised local operating unit (LOU) which issues LEIs. A list of all authorised LOUs can be found on the Global LEI Foundation website. LEIs must be renewed annually. To do this you must provide the LOU with updated information so that they can verify the data held on the LEI.

SMBC Group entity	LEI
SMBC BI London	NT7C58H5HPZYKZDPOO64
SMBC BI Paris	2549007H11SP7GCXGN21
SMBC EU and its branches	9676007O0UF5YB3QPR03
SMBC Nikko	G7WFA3G3MT5YHH8CHG81
SMBC DP	XXUQGBG45F6A0S031JI10
SMBC and its EEA branches	5U0XI89JRFVHWIBS4F54

SYSTEMATIC INTERNALISER

A systematic internaliser (SI) is an investment firm which, on an organised, frequent, systematic and substantial basis deals on own account by executing client orders outside a regulated market, a multilateral trading facility or an organised trading facility without operating a multilateral system.

From 24 October 2018, the following entities are SIs for foreign exchange (FX) derivatives that are traded on a trading venue with the corresponding SI market identifier codes (MICs):

MIC	Legal entity name
SMBE	SMBC BI
SMBB	SMBC Brussels
SMBD	SMBC Düsseldorf
SMBG	SMBC London
SMFF	SMBC EU Frankfurt
NCML	SMBC Nikko

Please note, the European Securities & Markets Authority (ESMA) has deemed the entire FX derivatives asset class as an illiquid market.

The SI commercial policy applies to business conducted on FX derivatives markets where SMBC Group has authorisation to carry out regulated activity in financial instruments as defined in MiFID II in the EEA.

^PDF Systematic internaliser commercial policy (SMBC and SMBC BI)

^PDF Systematic internaliser commercial policy (SMBC Nikko)

Client letters

^PDF Systematic internaliser client letter (SMBC Nikko – 1 May 2019)

^PDF Systematic internaliser client letter (SMBC Nikko – 1 September 2018)

LEGAL RESOURCES

Investment business information packs

The information packs consolidate certain requirements such as order execution, risk disclosure, conflicts of interest and other necessary information into a single document for clients of SMBC EU.

^PDF Capital markets investment business information pack (SMBC EU – 1 January 2023)

^PDF Global markets investment business information pack (SMBC EU – 1 January 2023)

Order execution

The order execution policy applies to business conducted with professional and retail clients of SMBC Group in the EEA. It is designed to inform SMBC Group's clients on how transactions are executed to provide a general understanding of SMBC Group’s dealing arrangements by product type in line with the best execution requirements as defined in MiFID II. SMBC Group will need to obtain your prior consent to the policy and your express consent to executing any orders outside of a trading venue. The policy is reviewed on an annual basis or where there is a material change that affects our ability to obtain best execution. Please note that this policy does not apply to eligible counterparties unless agreed otherwise.

^PDF Order execution policy (SMBC and SMBC BI)

^PDF Order execution policy (SMBC Nikko and SMBC DP)

En français (in French)

^PDFPolitique d’exécution des ordres

^PDFFormulaire de notification de consentement

Risk disclosure

The risk disclosure notice contains a general description of the principal risks arising from financial instruments which are generally offered to clients.

^PDF General description of the nature and risks of financial instruments

Conflicts of interest

Under MiFID II, SMBC Group is required to maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to identify, monitor and manage conflicts of interest.

^PDF Summary of conflicts of interest policy

En français (in French)

^PDF Résumé de la politique de gestion des conflits d’intérêts

EX-ANTE COSTS AND CHARGES

SMBC Group is required to inform clients of the costs and charges for services offered and products traded on an ex-ante (pre-trade) basis in accordance with MiFID Article 24 of Directive 2014/65/EU and Article 50 of MiFID II Delegated Regulation. This is an estimation of costs that will incur prior to providing investment services and activities or ancillary services as defined under MiFID II.

^PDF Ex-ante costs and charges (SMBC and SMBC BI)

ALLOCATION PROCESS

The allocation policy is expected to apply in respect to the process of underwriting and placing of securities offerings. It is designed to ensure that the allocation process is conducted in a fair and transparent manner and in accordance with appropriate standards of market conduct, the issuer and investor clients are treated fairly, conflicts of interest are appropriately managed through effective organisational and administrative arrangements, and an orderly market is maintained.

^PDF Summary of allocations policy

RTS 27

Under MiFID II, SMBC Group is required to take all sufficient steps to obtain the best possible result for clients when executing their orders. Moreover, as a liquidity provider, SMBC Group is under an obligation to publish quarterly reports on the quality of execution of transactions, known as the RTS 27 report. It includes details about the price, costs, speed, and likelihood of execution for each type of financial instrument in respect of which we act as a liquidity provider.

RTS 27 reports are available below and have been prepared on best efforts basis. SMBC Group reserves the right to amend the reports if deemed necessary.

2021 Q3

Period covering 1 July 2021 to 30 September 2021.

^CSV RTS 27 report (SMBC – 2021 Q3)

^CSV RTS 27 report (SMBC BI – 2021 Q3)

^CSV RTS 27 report (SMBC EU – 2021 Q3)

^CSV RTS 27 bonds tables 1 to 4, 6 and 9 (SMBC Nikko – 2021 Q3)

^CSV RTS 27 convertible bonds tables 1 to 4, 6 and 9 (SMBC Nikko – 2021 Q3)

^CSV RTS 27 equities tables 1 to 4, 6 and 9 (SMBC Nikko – 2021 Q3)

^CSV RTS 27 warrants tables 1 to 4, 6 and 9 (SMBC Nikko – 2021 Q3)

^CSV RTS 27 bonds, convertible bonds, equities and warrants table 5 (SMBC Nikko – 2021 Q3)

^CSV Type of execution venue (SMBC – 2021 Q3)

^CSV Type of execution venue (SMBC BI – 2021 Q3)

^CSV Type of execution venue (SMBC EU – 2021 Q3)

2021 Q2

Period covering 1 April 2021 to 30 July 2021.

^CSV RTS 27 report (SMBC – 2021 Q2)

^CSV RTS 27 report (SMBC BI – 2021 Q2)

^CSV RTS 27 report (SMBC EU – 2021 Q2)

^CSV RTS 27 bonds tables 1 to 4, 6 and 9 (SMBC Nikko – 2021 Q2)

^CSV RTS 27 convertible bonds tables 1 to 4, 6 and 9 (SMBC Nikko – 2021 Q2)

^CSV RTS 27 equities tables 1 to 4, 6 and 9 (SMBC Nikko – 2021 Q2)

^CSV RTS 27 warrants tables 1 to 4, 6 and 9 (SMBC Nikko – 2021 Q2)

^CSV RTS 27 bonds, convertible bonds, equities and warrants table 5 (SMBC Nikko – 2021 Q2)

^CSV Type of execution venue (SMBC – 2021 Q2)

^CSV Type of execution venue (SMBC BI – 2021 Q2)

^CSV Type of execution venue (SMBC EU – 2021 Q2)

2021 Q1

Period covering 1 January 2021 to 31 March 2021.

^CSV RTS 27 report (SMBC – 2021 Q1)

^CSV RTS 27 report (SMBC BI – 2021 Q1)

^CSV RTS 27 report (SMBC EU – 2021 Q1)

^CSV RTS 27 bonds tables 1 to 4, 6 and 9 (SMBC Nikko – 2021 Q1)

^CSV RTS 27 convertible bonds tables 1 to 4, 6 and 9 (SMBC Nikko – 2021 Q1)

^CSV RTS 27 equities tables 1 to 4, 6 and 9 (SMBC Nikko – 2021 Q1)

^CSV RTS 27 warrants tables 1 to 4, 6 and 9 (SMBC Nikko – 2021 Q1)

^CSV RTS 27 bonds, convertible bonds, equities and warrants table 5 (SMBC Nikko – 2021 Q1)

^CSV Type of execution venue (SMBC – 2021 Q1)

^CSV Type of execution venue (SMBC BI – 2021 Q1)

^CSV Type of execution venue (SMBC EU – 2021 Q1)

2020 Q4

Period covering 1 October 2020 to 31 December 2020.

^CSV RTS 27 report (SMBC – 2020 Q4)

^CSV RTS 27 report (SMBC BI – 2020 Q4)

^CSV RTS 27 report (SMBC EU – 2020 Q4)

^CSV RTS 27 bonds tables 1 to 4, 6 and 9 (SMBC Nikko – 2020 Q4)

^CSV RTS 27 convertible bonds tables 1 to 4, 6 and 9 (SMBC Nikko – 2020 Q4)

^CSV RTS 27 equities tables 1 to 4, 6 and 9 (SMBC Nikko – 2020 Q4)

^CSV RTS 27 warrants tables 1 to 4, 6 and 9 (SMBC Nikko – 2020 Q4)

^CSV RTS 27 bonds, convertible bonds, equities and warrants table 5 (SMBC Nikko – 2020 Q4)

^CSV Type of execution venue (SMBC – 2020 Q4)

^CSV Type of execution venue (SMBC BI – 2020 Q4)

^CSV Type of execution venue (SMBC EU – 2020 Q4)

2020 Q3

Period covering 1 July 2020 to 31 September 2020.

^CSV RTS 27 report (SMBC – 2020 Q3)

^CSV RTS 27 report (SMBC BI – 2020 Q3)

^CSV RTS 27 report (SMBC EU – 2020 Q3)

^CSV RTS 27 bonds tables 1 to 4, 6 and 9 (SMBC Nikko – 2020 Q3)

^CSV RTS 27 convertible bonds tables 1 to 4, 6 and 9 (SMBC Nikko – 2020 Q3)

^CSV RTS 27 equities tables 1 to 4, 6 and 9 (SMBC Nikko – 2020 Q3)

^CSV RTS 27 warrants tables 1 to 4, 6 and 9 (SMBC Nikko – 2020 Q3)

^CSV RTS 27 bonds, convertible bonds, equities and warrants table 5 (SMBC Nikko – 2020 Q3)

^CSV Type of execution venue (SMBC – 2020 Q3)

^CSV Type of execution venue (SMBC BI – 2020 Q3)

^CSV Type of execution venue (SMBC EU – 2020 Q3)

2020 Q2

Period covering 1 April 2020 to 30 June 2020.

^CSV RTS 27 report (SMBC – 2020 Q2)

^CSV RTS 27 report (SMBCE – 2020 Q2)

^CSV RTS 27 report (SMBC EU – 2020 Q2)

^CSV RTS 27 bonds tables 1 to 4, 6 and 9 (SMBC Nikko – 2020 Q2)

^CSV RTS 27 convertible bonds tables 1 to 4, 6 and 9 (SMBC Nikko – 2020 Q2)

^CSV RTS 27 equities tables 1 to 4, 6 and 9 (SMBC Nikko – 2020 Q2)

^CSV RTS 27 warrants tables 1 to 4, 6 and 9 (SMBC Nikko – 2020 Q2)

^CSV RTS 27 bonds, convertible bonds, equities and warrants table 5 (SMBC Nikko – 2020 Q2)

^CSV Type of execution venue (SMBC – 2020 Q2)

^CSV Type of execution venue (SMBCE – 2020 Q2)

^CSV Type of execution venue (SMBC EU – 2020 Q2)

2020 Q1

Period covering 1 January 2020 to 31 March 2020.

^CSV RTS 27 report (SMBC – 2020 Q1)

^CSV RTS 27 report (SMBCE – 2020 Q1)

^CSV RTS 27 report (SMBC EU – 2020 Q1)

^CSV RTS 27 bonds tables 1 to 4, 6 and 9 (SMBC Nikko – 2020 Q1)

^CSV RTS 27 convertible bonds tables 1 to 4, 6 and 9 (SMBC Nikko – 2020 Q1)

^CSV RTS 27 equities tables 1 to 4, 6 and 9 (SMBC Nikko – 2020 Q1)

^CSV RTS 27 warrants tables 1 to 4, 6 and 9 (SMBC Nikko – 2020 Q1)

^CSV RTS 27 bonds, convertible bonds, equities and warrants table 5 (SMBC Nikko – 2020 Q1)

^CSV Type of execution venue (SMBC – 2020 Q1)

^CSV Type of execution venue (SMBCE – 2020 Q1)

^CSV Type of execution venue (SMBC EU – 2020 Q1)

2019 Q4

Period covering 1 October 2019 to 31 December 2019.

^CSV RTS 27 report (SMBC – 2019 Q4)

^CSV RTS 27 report (SMBCE – 2019 Q4)

^CSV RTS 27 report (SMBC EU – 2019 Q4)

^CSV RTS 27 bonds tables 1 to 4, 6 and 9 (SMBC Nikko – 2019 Q4)

^CSV RTS 27 convertible bonds tables 1 to 4, 6 and 9 (SMBC Nikko – 2019 Q4)

^CSV RTS 27 equities tables 1 to 4, 6 and 9 (SMBC Nikko – 2019 Q4)

^CSV RTS 27 warrants tables 1 to 4, 6 and 9 (SMBC Nikko – 2019 Q4)

^CSV RTS 27 bonds, convertible bonds, equities and warrants table 5 (SMBC Nikko – 2019 Q4)

^CSV Type of execution venue (SMBC – 2019 Q4)

^CSV Type of execution venue (SMBCE – 2019 Q4)

^CSV Type of execution venue (SMBC EU – 2019 Q4)

2019 Q3

Period covering 1 July 2019 to 30 September 2019.

^CSV RTS 27 report (SMBC – 2019 Q3)

^CSV RTS 27 report (SMBCE – 2019 Q3)

^CSV RTS 27 report (SMBC EU – 2019 Q3)

^CSV RTS 27 FX options table 2 (2019 Q3)

^CSV RTS 27 FX options table 3 (2019 Q3)

^CSV RTS 27 bonds tables 1 to 4, 6 and 9 (SMBC Nikko – 2019 Q3)

^CSV RTS 27 convertible bonds tables 1 to 4, 6 and 9 (SMBC Nikko – 2019 Q3)

^CSV RTS 27 equities tables 1 to 4, 6 and 9 (SMBC Nikko – 2019 Q3)

^CSV RTS 27 bonds, convertible bonds, equities and warrants table 5 (SMBC Nikko – 2019 Q3)

^CSV RTS 27 FX options table 4 (2019 Q3)

^CSV Type of execution venue (SMBC – 2019 Q3)

^CSV Type of execution venue (SMBCE – 2019 Q3)

^CSV Type of execution venue (SMBC EU – 2019 Q3)

2019 Q2

Period covering 1 April 2019 to 30 June 2019.

^CSV RTS 27 report (SMBC – 2019 Q2)

^CSV RTS 27 report (SMBCE – 2019 Q2)

^CSV RTS 27 FX options table 2 (2019 Q2)

^CSV RTS 27 FX options table 3 (2019 Q2)

^CSV RTS 27 FX options table 4 (2019 Q2)

^CSV RTS 27 bonds tables 1 to 4, 6 and 9 (SMBC Nikko – 2019 Q2)

^CSV RTS 27 convertible bonds tables 1 to 4, 6 and 9 (SMBC Nikko – 2019 Q2)

^CSV RTS 27 equities tables 1 to 4, 6 and 9 (SMBC Nikko – 2019 Q2)

^CSV RTS 27 warrants tables 1 to 4, 6 and 9 (SMBC Nikko – 2019 Q2)

^CSV RTS 27 bonds, convertible bonds, equities and warrants table 5 (SMBC Nikko – 2019 Q2)

^CSV Type of execution venue (SMBC – 2019 Q2)

^CSV Type of execution venue (SMBCE – 2019 Q2)

2019 Q1

Period covering 1 January 2019 to 31 March 2019.

^CSV RTS 27 report (SMBC – 2019 Q1)

^CSV RTS 27 report (SMBCE – 2019 Q1)

^CSV RTS 27 bonds tables 1 to 4, 6 and 9 (SMBC Nikko – 2019 Q1)

^CSV RTS 27 convertible bonds tables 1 to 4, 6 and 9 (SMBC Nikko – 2019 Q1)

^CSV RTS 27 equities tables 1 to 4, 6 and 9 (SMBC Nikko – 2019 Q1)

^CSV RTS 27 warrants tables 1 to 4, 6 and 9 (SMBC Nikko – 2019 Q1)

^CSV RTS 27 bonds, convertible bonds, equities and warrants table 5 (SMBC Nikko – 2019 Q1)

^CSV RTS 27 FX options table 2 (2019 Q1)

^CSV RTS 27 FX options table 3 (2019 Q1)

^CSV RTS 27 FX options table 4 (2019 Q1)

^CSV Type of execution venue (SMBC – 2019 Q1)

^CSV Type of execution venue (SMBCE – 2019 Q1)

2018 Q4

Period covering 1 October 2018 to 31 December 2018.

^CSV RTS 27 report (SMBC – 2018 Q4)

^CSV RTS 27 report (SMBCE – 2018 Q4)

^CSV RTS 27 FX options table 2 (2018 Q4)

^CSV RTS 27 FX options table 3 (2018 Q4)

^CSV RTS 27 FX options table 4 (2018 Q4)

^CSV RTS 27 bonds tables 1 to 4, 6 and 9 (SMBC Nikko – 2018 Q4)

^CSV RTS 27 convertible bonds tables 1 to 4, 6 and 9 (SMBC Nikko – 2018 Q4)

^CSV RTS 27 equities tables 1 to 4, 6 and 9 (SMBC Nikko – 2018 Q4)

^CSV RTS 27 warrants tables 1 to 4, 6 and 9 (SMBC Nikko – 2018 Q4)

^CSV RTS 27 bonds, convertible bonds, equities and warrants table 5 (SMBC Nikko – 2018 Q4)

^CSV Type of execution venue (SMBC – 2018 Q4)

^CSV Type of execution venue (SMBCE – 2018 Q4)

2018 Q3

Period covering 1 July 2018 to 30 September 2018.

^CSV RTS 27 report (SMBC – 2018 Q3)

^CSV RTS 27 report (SMBCE – 2018 Q3)

^CSV RTS 27 FX options table 2 (2018 Q3)

^CSV RTS 27 FX options table 3 (2018 Q3)

^CSV RTS 27 FX options table 4 (2018 Q3)

^CSV RTS 27 bonds tables 1 to 4, 6 and 9 (SMBC Nikko – 2018 Q3)

^CSV RTS 27 convertible bonds tables 1 to 4, 6 and 9 (SMBC Nikko – 2018 Q3)

^CSV RTS 27 equities tables 1 to 4, 6 and 9 (SMBC Nikko – 2018 Q3)

^CSV RTS 27 warrants tables 1 to 4, 6 and 9 (SMBC Nikko – 2018 Q3)

^CSV RTS 27 bonds, convertible bonds, equities and warrants table 5 (SMBC Nikko – 2018 Q3)

^CSV Type of execution venue (SMBC – 2018 Q3)

^CSV Type of execution venue (SMBCE – 2018 Q3)

2018 Q2

Period covering 1 April 2018 to 30 June 2018.

^CSV RTS 27 report (SMBC – 2018 Q2)

^CSV RTS 27 report (SMBCE – 2018 Q2)

^CSV RTS 27 FX options table 2 (2018 Q2)

^CSV RTS 27 FX options table 3 (2018 Q2)

^CSV RTS 27 FX options table 4 (2018 Q2)

^CSV Type of execution venue (SMBC – 2018 Q2)

^CSV Type of execution venue (SMBCE – 2018 Q2)

2018 Q1

Period covering 1 January 2018 to 31 March 2018.

^CSV RTS 27 report (SMBC – 2018 Q1)

^CSV RTS 27 report (SMBCE – 2018 Q1)

^CSV RTS 27 FX options table 2 (2018 Q1)

^CSV RTS 27 FX options table 3 (2018 Q1)

^CSV RTS 27 FX options table 4 (2018 Q1)

^CSV Type of execution venue (SMBC – 2018 Q1)

^CSV Type of execution venue (SMBCE – 2018 Q1)

Cost information

^CSV Cost information (SMBC)

^CSV Cost information (SMBCE)

RTS 28

Top five execution venues in terms of trading volumes for all executed client orders per class of financial instruments and a summary of the analysis and conclusions drawn from detailed monitoring.

MiFID II