This letter sets out certain standard terms of the Investment Bank of Barclays when we trade with you in principal-to-principal or wholesale markets transactions; whether by voice, electronic or other means. To the extent that you continue to discuss and/or enter into transactions with us, you will demonstrate your agreement and consent to the terms disclosed below. With respect to the content covered, this letter supersedes any previous terms of business or other disclosure of standard terms on which we trade with you in principal-to-principal, wholesale markets transactions.
Barclays Investment Bank operates through Barclays Bank plc, Barclays Capital Inc., Barclays Capital Securities Limited and other affiliates, all of which are part of the Barclays group. The Barclays group is a global financial services firm and provides a wide range of financial services and products.
Due to the nature of our business, you may also have relationships with other divisions of Barclays and other members of the Barclays group. The terms set out in this disclosure letter are limited to your dealings with the Investment Bank of Barclays when we trade with you in principal-to-principal, wholesale markets transactions and do not affect your other dealings with the Barclays group.
This disclosure is not intended to exclude any mandatory obligations that we owe you under any applicable law or regulation.
When we trade with you in principal-to-principal, wholesale markets transactions, Barclays may trade before, during, or after your transaction, to execute transactions for Barclays or to facilitate executions with other counterparties, to manage risk, to source liquidity, or for other reasons. These activities can affect the prices we offer and the availability of liquidity at levels necessary to execute counterparty transactions, including orders. They can also trigger stop loss orders, barriers, knock-outs, knock-ins and similar conditions. However, in conducting these activities, Barclays executes transactions in a commercially reasonable manner in light of all relevant circumstances.
Conflicts of interest
Barclays has specific policies and procedures addressing the conflicts of interest inherent in principal trading relationships, understanding the interests of our counterparties and managing our business towards an acceptable return. These policies and procedures are reinforced internally with regular training and review. Further, there is active management oversight and regular monitoring of conflicts of interest, including escalation and resolution channels.
Barclays transacts and makes markets in multiple financial products and instruments. Unless otherwise expressly agreed, or provided for in other applicable Barclays disclosures, or required by law or regulation, Barclays conducts these activities as principal.
When Barclays executes its principal transactions with you it does so as an arm’s length counterparty and not as an agent. Barclays does not act as a fiduciary or financial advisor, or in any similar capacity, on your behalf in relation to these transactions.
When you provide Barclays with specific information for the purpose of obtaining a quote or request Barclays to enter into a transaction as your counterparty, such information, along with all other information available to Barclays, may (subject to applicable law) be used by Barclays to engage in its trading, market making and risk management activities, including pre-hedging and hedging activities, without further disclosure to you.
Any pre-hedging or hedging transactions will be entered into with a view to managing risk and facilitating your transaction and may be executed before, during and after receiving a live pricing request or firm order from you.
Any pre-hedging and hedging transactions entered into by Barclays could be at different prices from the price at which Barclays executes your transaction, which may affect the market prices, or rates of, or liquidity for, the financial products or instruments you are buying or selling which may result in profit or loss to Barclays.
Protecting the confidentiality and security of your information is an important part of how we do business. Barclays has policies and procedures that are reasonably designed to protect the confidentiality of your information.
Barclays makes use of information provided to it as principal in order to effectuate and risk manage transactions. In addition, as part of its obligations as a regulated entity, Barclays may also share your information as required by its legal and regulatory requirements.
Barclays’ personnel may have access to, and use information, including but not limited to, your orders (i.e. orders executed in full or part, cancelled, or expired), indications of interest, quotes, request for quotes, positions, trade and other data and analytics (collectively ‘Data’). This Data may be used for market color reports, analytical tools, trade idea generators, risk management strategies, liquidity provision and other Barclays’ products and services.
The nature of any Data provided to you may differ from that provided to others in terms of quantity, scope, methodology or otherwise and may be changed from time to time without notice to you.
Barclays maintains a ‘need to know’ standard, which provides that access to your counterparty-specific information, that is not anonymous, is limited to those employees who have a ‘need to know’ access to such information to perform their duties and to carry out the purpose for which the information is provided to them. Clients have the ability to opt-out of having their information included in certain types of analysis.
Barclays may provide certain business information to third parties that Barclays appoints to conduct market analysis and research for Barclays. We use these studies to assist us to understand our position in the market and tailor the service we provide to our clients. They are one of a number of tools which we use to monitor our performance. The information provided may include the identity of a client and Barclays’ revenue (including without limitation sales credits, commissions, commission-equivalents and spreads) arising from business with that client on a product line or other basis over various time periods.
The third parties may combine the information they receive from Barclays with similar information received from other brokers and provide that combined information back to participating brokers on an aggregated basis. Barclays requires such third parties to enter into confidentiality agreements with Barclays requiring them to keep any information we disclose to them confidential and not to disclose it to any other party except in accordance with the rules of the relevant study. Clients have the ability to opt-out of having their information included for third party marketing and research services.
Barclays may utilise third party vendors for data storage, analysis and back office functions. These third parties may store data at Barclays’ locations, at a third party location or on a cloud.
If you have any questions or concerns regarding any of the items above or if you would like opt-out as provided under Information handling, please contact your Barclays sales representative.
Barclays Bank PLC