Handling of Fixed Income Electronic Trade Requests
Barclays transacts and makes markets in multiple fixed income financial products and instruments, including bonds and derivatives (corporate, sovereigns, supernationals and agencies (SSA) bonds, and interest rate derivatives). 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 managing its risk, Barclays reserves the right to maintain discretion in determining when and how to hedge or pre-hedge (see Barclays Pre-Hedging and Hedging Global Disclosure).
Barclays, in its sole discretion, may provide you liquidity by streaming indicative prices via third party electronic trading platforms – this functionality is commonly referred to as “click to trade”. Third party electronic platforms may also provide a facility for Barclays to receive and respond to trade requests from you – this functionality is commonly referred to as “request for quotation”.
Unless explicitly stated otherwise or required by a venue’s protocol (e.g. “on the wire time”), prices communicated to you electronically by Barclays, whether in connection with request for quotation or click to trade functionality or otherwise, do not constitute firm offers to transact but rather are indications of interest subject to further review by us.
Your electronic trade request (whether made by request for quotation, using click to trade functionality or otherwise) constitutes an electronic offer by you to execute a transaction. Upon receipt of such an electronic offer to execute a transaction at a price and quantity, Barclays will assess it against a variety of pre-trade factors.
These factors may include, among others, available inventory, liquidity, prevailing market prices, anticipated loss or gain based on our analysis of the market and our trading experience with you and/or other market participants, credit and product terms and filters we may employ for the purpose of implementing credit limits, position limits or other limits on your electronic trading activities.
These factors may be changed from time to time by us in our sole discretion without notice to you, and the ones used in responding to your trade requests may differ from those applied to other counterparties. As part of these factors, Barclays may utilize automated processes whereby our trading systems evaluate whether an electronic trade request received by us is within our trading parameters by systematically comparing it to our current price.
These parameters may vary by product and may not be identical for price moves in either direction (i.e. in favor of Barclays or in favor of you). Barclays is not obligated to accept any electronic trading request from you and may accept or reject such requests at its sole discretion without notice to you.