Q: When did MiFID II come into effect?

MiFID II came into force on the 3 rd January, 2018.

Question 1

Mapping table to assist in your search

André Antunes · Accepted Answer

Asset class	Products covered
Rates	G10 Rates: swaps, bonds, options
Rates	Local Market Rates: swaps, bonds, options
Secondary Credit	G10 Credit: Index / Index swaptions, ETF ibox TRS, Index tranches, Bonds and CDS (IG, HY, Non-rated, Distressed, leverage loans), ABS and CLO (IG and HY)
Secondary Credit	Local Market Credit: Bonds and CDS (IG, HY, and Distressed
FX	Forwards, swaps, Vanilla options & FVA, Digital FX Option on single underlying, Vol/ Var Swap, Structured FX Forward
Commodity Derivatives	Linear (swaps), options with various commodity underlying
EQD: Convertible Bonds	With IG, and non-rated & non IG underlying
Securities Financing Transactions	Repo, reverse repo, & SLAB
Primary	Vanilla MTNs / Private Placements

Grids do not cover the full offering of financial instruments offered by BNPP. For example, some bespoke instruments, instruments with long maturity, will not be covered by the grids. When a financial instrument is not covered, you will receive a separate notification from your BNP representative before trading. Always enquire about your estimated cost and charges before committing to the transaction.

Question 2

What are the MiFID II requirements for costs and charges?

André Antunes · Accepted Answer

As part of the enhanced investor protection rules, MiFID II requires investment firms to disclose expected costs and charges in good time before providing services to a client.
MiFID II also requires investment firms to provide an annual summary of actual trade costs, and, if requested by clients, ad-hoc reports of costs incurred.

Question 3

When did MiFID II come into effect?

André Antunes · Accepted Answer

MiFID II came into force on the 3^rd January, 2018.

Question 4

From when do BNP Paribas’s reporting obligations start?

André Antunes · Accepted Answer

MiFID II went live on the 3rd January 2018, therefore our obligations to report costs and charges started then. The implications of this start date are:

We will only provide pre-trade costs from 3^rd January, 2018
The reporting period for ad-hoc requests will start from 3rd January, 2018, and will not include any 2017 costs and charges
Your first annual ex-post report will cover the period from 3^rd January, 2018 to 31^st December 2018

Question 5

How will I be told about my pre-trade costs?

André Antunes · Accepted Answer

How you are informed of your expected costs will depend on the product and your client classification. If you are:

classified as a Professional or an Eligible Counterparty (as defined in MiFID II) and;
have received the ‘Costs and Charges’ letter from us

Then for those products shown on this website, a maximum cost grid is available. Please follow the instructions on the website to find the maximum expected cost for that product; note that the actual cost may be lower than this. If your contact at BNP Paribas considers that the maximum expected cost grid is not an accurate representation of the expected cost, then a separate pre-trade cost will be provided to you. For all other products not found in the ‘Search’ function, your BNPP representative will provide you with the expected cost, in good time prior to trading, in a separate communication.

Question 6

I haven’t received a Costs and Charges letter for the Cost and Charges Website?

André Antunes · Accepted Answer

We sent a notification email to all of clients that will be affected by these changes in December 2017. If you think you should have received one, but did not, then please contact your normal BNPP representative as soon as possible.

Question 7

I am a retail client; do the grids on the Costs and Charges Website apply to me?

André Antunes · Accepted Answer

No, the maximum cost grids do not apply to you. The website is only applicable for our clients that have been classified as a Professional or an Eligible counterparty. As a client that has been classified as “Retail”, you should have received a KID (“Key Information Document”) under the PRIIPs (“Packaged Retail and Insurance-based Investment Products”) regulation. The KID contains pre-trade costs.

Question 8

How far in advance should I receive my expected costs?

André Antunes · Accepted Answer

The regulation specifies that the expected costs should be provided to the client in good time, before committing to the transaction.

Question 9

How have the maximum costs grids been prepared?

André Antunes · Accepted Answer

The maximum cost grids have been prepared based on an analysis of historical costs. Where this has not been possible, a reasonable estimate of expected costs has been made.

Question 10

How often are the maximum costs grids updated?

André Antunes · Accepted Answer

The maximum costs grids will be constantly monitored for accuracy and updated as appropriate. If, for example, there were significant market events that meant the grids were no longer accurate, then your normal BNP Paribas representative would provide you with a separate communication on your expected costs.

Question 11

How can I find older versions of the maximum cost grids?

André Antunes · Accepted Answer

Older versions will be kept on the website for a limited time, if you require older ones please contact your usual BNP Paribas representative.

Question 12

Why can’t I find my pre-trade costs on the website?

André Antunes · Accepted Answer

The maximum costs grids cover liquid, relatively standardised, products only.  Even if you are trading a similar product, there may be certain features that cannot be captured by the grid, for example a very long-dated trade, or infrequently traded currencies. In these situations, your normal BNP Paribas representative will send you, pre-trade, the expected costs for that particular trade.

Question 13

What happens if my actual costs are higher than the expected pre-trade costs?

André Antunes · Accepted Answer

If you consider that your actual costs were higher than those disclosed (whether on the website or in a separate communication), please contact your normal BNPP representative as soon as possible.

Question 14

I have not received my pre-trade costs

André Antunes · Accepted Answer

If you have not received any communication from your BNPP representative, please check whether the product that are you about to trade is covered by the maximum costs grids on the Costs and Charges website. If they are not, and you haven’t received a separate communication, please contact your BNPP representative as soon as possible prior to completion of the transaction.

Cost and Charges Grids EX Ante

Protected Area

Warning

If you do not meet these requirements, please do not proceed any further