nextmarkets Trading Limited "("nextmarkets") has set itself the goal of avoiding as far as possible any conflicts of interest that may arise in connection with its business activities. However, certain conflicts of interest are inherent in the businesses operated by nextmarkets, so that it is not possible for it to eliminate all actual or potential conflicts of interest.
Via this Conflict of Interest Policy, nextmarkets is thereby informing customers about existing conflicts of interest and will adhere to the principles described below when dealing with conflicts of interest.
Persons that potentially could have a conflict of interest
Conflicts of interest that may be relevant to you arise between you as a customer of nextmarkets on the one hand and the following persons or entities on the other:
managers, executives and employees of nextmarkets;
Persons or companies associated with nextmarkets, including in particular:
Companies that are in the same company group as nextmarkets (e.g. parent or subsidiary companies, etc.) as well as their managing directors, executives and employees, including in particular the coaches who develop trading ideas for the nextmarkets group;
Business partners, contractually bound agents and affiliates of nextmarkets;
Other nextmarkets customers.
Potential conflicts of interest
Different conflicts of interest can arise in the course of nextmarkets' business activities. This is intended to illustrate the most important conflicts of interest to the customer. However, it is conceivable that further conflicts of interest not mentioned here may arise in the course of the business relationship between you (the customer) and nextmarkets; in such a case, nextmarkets will inform you (the customer) separately about the occurrence of such a conflict.
Conflict of interest inherent in the system
Since nextmarkets acts as market maker, nextmarkets will hold the opposite position to any position held by the client. Unless this is economically offset by an opposite transaction of another nextmarkets customer ("netting") and nextmarkets is not hedged with other brokers ("hedging"), this means that a loss of the customer is offset by a profit of nextmarkets of the same amount (and conversely, a loss of nextmarkets of the same amount as a gain for the customer). This conflict of interest is inherent in the structure of the CFD trading offered by nextmarkets. Since nextmarkets is not obliged to hedge its own positions, it is possible that the interests of the customer and the interests of nextmarkets may be in conflict with each customer transaction.
Other conflicts of interest
In addition to the main conflicts of interest mentioned above, other conflicts of interest may arise:
an interest of nextmarkets to generate sales through the trading activity of customers;
any performance-related remuneration of employees or agents;
Interests of the business activities of the group of companies to which nextmarkets belongs ("nextmarkets group of companies");
relationships of the nextmarkets group of companies with other financial services companies and banks;
personal relationships of the employees or the management of nextmarkets or the persons connected with them or the participation of these persons in supervisory or advisory boards.
Conflicts of interest regarding content created by coaches
nextmarkets provides clients with trading ideas from coaches. The coaches create this content for a company that is part of the nextmarkets group of companies and passes the content on to nextmarkets. nextmarkets has a fundamental interest in a high trading activity of customers, which is potentially promoted by providing these trading ideas. A high level of trading activity is not generally in the client's interest, so a conflict of interest is possible. Since the remuneration of the coaches is independent of the turnover of nextmarkets, the coaches themselves are not subject to the described conflict of interests. In addition, the coaches themselves and the transactions they execute cannot influence nextmarkets' trading book beyond the effect of the transaction.
nextmarkets has taken measures to protect the interests of its customers. nextmarkets has an independent compliance function that reports directly to the Executive Board. This department is responsible, among other things, for identifying conflicts of interest, avoiding them as far as possible and managing nextmarkets' handling of emerging conflicts of interest. The measures taken by nextmarkets to protect customer interests include in particular:
Alignment of employee remuneration with customer interests;
Establishment and monitoring of rules of conduct for employees ("employee guidelines");
Establishment of information barriers ("Chinese walls"), separation of responsibilities and spatial separation to create clearly defined areas of confidentiality between the trading department and the departments that have contact with customers or coaches;
Disclosure of securities transactions of such employees to the Compliance Office where conflicts of interest may arise in the course of their activities;
Maintaining an insider or observation list to monitor any sensitive information and to prevent the misuse of insider information;
Maintaining a blacklist in order to be able to counter conflicts of interest that arise;
Disclosure of conflicts of interest that cannot be avoided or resolved.
nextmarkets may however decide to reject a transaction in order to prevent a conflict of interest if, after examining the facts of the case, nextmarkets comes to the conclusion that disclosure of the conflict cannot help to resolve the conflict;
Staff have been instructed not to provide advice to customers under any circumstances.