Legal

Caxton FX Limited (We, Us, Our) is authorized and regulated by the Financial Conduct Authority to provide financial services to. We are also registered as a data controller with the Information Commissioner’s Office, registration number Z7413780.

Authorised and Regulated

Caxton FX Ltd is authorised and regulated by the Financial Conduct Authority under the Financial Services and Markets Act 2000 ('FSMA') as well as the Payment Services Regulations 2017 ('PSR'). Read below for details on what this means for you.


Financial regulations; security of your funds

As part of our permissions, we offer clients who use our services the protection of the FCA's client money rules. Click here and here to view our permissions.

How does it work?

Caxton FX offers "Client Money protection" on all currencies that we exchange. If you send money to us prior to a transaction taking place and if we hold money for you after an FX transaction has been completed or if we are holding money for you with respect to designated investment business as defined by the rules of the FCA, then we hold your funds under "Client Money protection".

Is my money safe?

Caxton FX holds all "Client Money" to the standard set out in the Financial Conduct Authority's Client Money rules. This means we segregate "Client Money" from the company's money and hold it separately in an EEA-regulated credit institution. The credit institution has specifically acknowledged that the money in these accounts belongs to our clients and they have no right of set-off with any of the firm's balances. This arrangement is designed to ensure that "Client Money" is not at risk in the unlikely event of Caxton FX getting into financial difficulties. These arrangements are checked and verified by our auditors.

Client Money has the specific definition of "money of any currency which, in the course of carrying on designated investment business, a firm holds in respect of any investment agreement entered into, with or for a client, or which a firm treats as client money in accordance with the client money rules." It is important to note that spot and forward foreign exchange transactions are not regulated activities. This means that, during the actual settlement process for your FX transaction, your funds are not held in segregated Client Money accounts and is not deemed to be Client Money at that time.


Financial Services Compensation Scheme

In respect of designated investment business only (see above), client money held by Caxton FX is also covered by the Financial Services Compensation Scheme (FSCS). For clarity, designated investment business does not include spot or forward FX transactions but does include currency options. Private investors, as defined by the FCA (which includes small companies), are covered by the scheme up to a limit of £50,000 per person per firm. For clarification, neither Foreign Exchange nor Payment Services are regulated investment products and so do not fall under the FSCS. Further details of the compensation scheme are available from the FSCS website www.fscs.org.uk.

If you need further clarification on this matter, please refer to our account management team on 0207 042 7629 or e-mail them on [email protected]

Money laundering

Caxton FX is fully committed to protecting the integrity of its transfer system - find here our strict Anti-Money Laundering policy.

What am I asked to do?

When you apply for any Caxton FX product, you will be asked to confirm your identity and other personal details. Caxton FX has established special verification systems to confirm your identity.

When?

You will be asked to confirm your identity whether you are applying to be a new customer. If you have been a customer for some time we may also ask you to confirm your identity on a periodic basis. While our identity verification systems are designed to minimise any inconvenience for you, the verification process may take a day or two to complete.

Why?

Crime and terrorism need cash. Criminals turn the 'dirty' money made from drug smuggling, trafficking and other organised crime into apparently clean money by using false identities or taking the names of innocent people - like you. Making sure that people are who they say they are is essential in the fight against crime and terrorism. This does not mean in any way that suspicion is falling on you. Any information about your identity is held confidentially and will help stop your identity being used falsely.

Who is involved?

HM Government and all organisations involved in financial services - all are united in their determination to stop the spread of financial crime as part of the international effort to protect us all against crime and terrorism.

Your co-operation is vital to the successful fight against crime and terrorism.

What the UK law requires

  • We are required to verify your identity and address.
  • We are required to keep full records of all transactions together with the identification provided.
  • We are required to monitor your account for any unusual or suspicious transactions.
  • We have a legal obligation to report to the UK National Crime Agency (NCA) any suspicious or potentially suspicious transaction.


Payment Services and E-Money Regulations

The new Payment Services Regulations ('PSRs') came into effect on 13th January 2018. These regulations build on an earlier version and are part of a Europe-wide directive that aims to harmonise the way that payments are made across the EEA, making them faster, easier and more transparent for the customer.

The regulating body in the UK is the Financial Conduct Authority (FCA). The PSRs require companies that offer "payment services" (ie transfer money for you) be either registered or authorised by the FCA.

All firms authorised under these regulations are required to abide by the Conduct of Business rules (COBs) which determine how companies may conduct their business with customers.

Authorised Payment Institutions and E-money Institutions must meet initial and ongoing requirements for maintaining certain levels of capital within their business and must comply with arrangements to safeguard their customer funds. They will also have to meet stringent criteria set by the FCA in terms of corporate governance, solvency and risk identification and management.

Caxton FX Ltd is regulated and authorised for the provision of payment services and E-money under number 900663. For a full list of our permissions please visit the FCA's website here: www.fca.gov.uk

Execution Policy

Caxton FX limited is Authorised and regulated by the Financial Conduct Authority for FSMA authorised investment business (FRN: 431844). It is a requirement of the Market in Financial Instruments Directive (MiFID) that Caxton publishes details of the steps taken to ensure best execution on an annual basis, details of which are set out in the report. Download Caxton RTS 28 Disclosure

Caxton FX provides a transparent and secure currency service. For details on our order execution policy and our money laundering policy, please read below. Our Privacy Policy can be viewed here.


MiFID execution policy

Introduction

This policy provides clients with information on the client order handling approach that Caxton applies to higher risk investment products as set out in this policy, as defined and required by the Markets in Financial Instruments Directive 2014/65/EU (MIFID II) as transposed into UK national law. In particular, this policy sets out the approach Caxton will apply to enabling best execution. Caxton is required to take all necessary steps to provide clients with the best possible outcome when executing orders on the customer’s behalf.   

Client Order Execution Policy

Caxton's MiFID Order execution policy applies where Caxton in the UK either receives an Order(s) from a Client and/or executes an Order(s), for a MiFID related product on a Client's behalf. These are typically for Options or Non-Deliverable Forward Contracts for Foreign Exchange. In the case where a Client approaches Caxton and requests a quote, this will not be treated as an Order; the Client will conclude the transaction on the basis of the quote provided.

This policy will be reviewed on at least an annual basis or where required by any changes in relevant legislation or product offering. Where any changes are made the latest version of this policy will be made available on our website as soon as possible.

Options Transactions

When clients approach Caxton for the purposes of entering into an FX Option transaction each request is individual and tailored to the requirements agreed with the client. Caxton will take account of the current conditions in the currency markets, the credit quality of the client and other factors prior to providing a quote. The client may accept this quote or decline to proceed. In every case Caxton acts only as the principal and not as an agent. 

Non-Deliverable Forward Contracts

When clients wish to take out a forward contract in a currency that cannot be physically settled and do not intend to take delivery of the full sum of the underlying foreign currency these are called non-deliverable forward contracts. Only the difference between the fixing spot price and the forward rate is actually settled. Such forwards are classified as Contracts for Difference and only available to Professional Clients or Eligible Counterparties. Caxton will only enter in to such contracts for hedging purposes and will not engage in speculative activity.    

Client Order Execution Factors and Execution Criteria

When executing Orders on a Client's behalf, and subject to any specific instructions that may be given, Caxton will take all reasonable steps to obtain the best possible result for the Client taking into account the following Execution Factors:

  • Price
  • Costs
  • Speed of execution
  • Likelihood of execution
  • Size of the Order
  • Nature of the Order
  • Any other consideration relevant to the execution of the Order

We will determine the relative importance of each of the above factors taking account of the following Execution Criteria:

  • Characteristics of the client
  • Characteristics and nature of the Order
  • Characteristics of the Financial Instruments that are subject to the Order
  • Characteristics of the execution Venues to which the Order can be directed

Ordinarily, price will merit a high relative importance in obtaining the best possible result. However, in some circumstances, we may appropriately decide that other factors are more important than price in obtaining the best possible execution result.

Execution Venues

Currently, all transactions conducted with Caxton will be 'Over-the-counter' rather an on-exchange or MTF (multilateral trading facility) transaction.

Client orders may be executed electronically, manually or by phone.

The following list of Execution Venues is subject to amendment from time to time and Clients should periodically check the list of Execution Venues. Clients will not be automatically advised of any changes.

NatWest Markets, 250 Bishopsgate, London, EC2M 4AA

Saxo Capital Markets UK Limited, 26th Floor, 40 Bank Street, Canary Wharf, London, E14 5DA

Caxton FX Limited – Portland House, Bressenden Place, London, SW1E 5BH

 

An assessment of the Execution Venues will be performed annually with regard to each type of Financial Instrument in which Caxton provides execution to ensure we are able to obtain the best result for Clients when executing Orders.

In considering selection of the most appropriate Execution Venue, and subject to specific instructions that may be given by you, Caxton will, after due regard to the Execution Factors and Execution Criteria set out above, adopt the following practice:

  • Caxton will act as the Execution Venue where it is believed that it is to the advantage of the Client or places the Client at no disadvantage.
  • Subject to the above, Caxton will select the Execution Venue that we consider the most appropriate in cases when placing Orders on a Regulated Market.

We will consider all sources of reasonably available information, including brokers and data vendors, to obtain the best possible result for the Client Order where Caxton acts as the Execution Venue.

Additional factors that will be considered in the selection of the Execution Venue include qualitative factors such as clearing schemes, circuit breakers, scheduled actions or any other relevant considerations.  

Market prices and liquidity may change quickly and may differ between providers.

Where markets are volatile or liquidity is limited we may not be able to execute orders as we would in normal market conditions. In these instances we will apply our experience and judgement in deciding the best way to execute client orders.     

Methods of Execution

Subject to any specific instructions that may be given by you, Caxton will implement its best execution policy using one or a mixture of methods.

Conditional upon having obtained your prior express consent,

Execution can take place directly on a Regulated Market. Caxton will execute with a third party participant with whom we have entered into an agreement for handling Orders for that Regulated Market.

Specific Client instructions

Where you give us a specific instruction with regard to the execution of an Order, we will execute the Order in accordance with those specific instructions. Where instructions are given by you that relate only to part of the Order, Caxton will continue to apply this MiFID Order execution policy to those elements of the Order not covered by your specific instructions.

You should be aware that providing specific instructions to us in relation to the execution of a particular Order may prevent us from acting wholly or partly in accordance with our MiFID Order execution policy to obtain the best possible result in respect of the elements covered by those instructions.

Fees and Commissions

The best execution requirement does not mean that Caxton has to compare the results that would have been achieved for clients on the basis of our own commission and fees with those applied by other firms which may relate to differences in the nature of the product or service provided.

When executing on behalf of clients, price and costs are considered amongst the most important execution factors. Unless expressly agreed with the client, Caxton do not charge any direct fees on a per transaction basis. The price that Caxton quotes or executes at will include a mark up/down at our discretion. The mark up/down may vary from one transaction to another based on a number of factors including market conditions, the nature of the transaction and other factors. We will always endeavor to make any mark up fair and reasonable.    

Monitoring and Review

Caxton will monitor the effectiveness of its MiFID Order execution policy and, where applicable, correct any shortfalls that we may identify.

We will review our Order execution arrangements annually. We will also review our MiFID Order execution policy annually, and whenever a material change occurs that affects our ability to continue to obtain the best possible results for our Clients.

We will notify you of any material changes to our execution arrangements or our MiFID Order execution policy by posting an updated version of this document on www.caxtonfx.com

Definitions

The following definitions apply throughout this document as follows:

Caxton - means Caxton FX Limited, which is authorised and regulated by the Financial Conduct Authority.

Eligible Counterparty - each of the following is a per se Eligible Counterparty:

  1. an investment firm;
  2. a credit institution;
  3. an insurance company;
  4. a Collective Investment Scheme authorised under UCITS Directive or its management company;
  5. a pension fund or its management company;
  6. another financial institution authorised or regulated under European Community legislation or the national law of an EEA state;
  7. an undertaking exempted from the application of MiFID under either Article 2(1)
  8. (certain own account dealers in commodities or commodity derivatives) or Article 2(1)(1) (locals) of that directive;
  9. a national government or its corresponding office, including a public body that deals with the public debt;
  10. a central bank;
  11. a supranational organisation.

Additionally, a firm may treat a client as an elective Counterparty if:

  1. the client is an undertaking;
  2. and is a per se Professional Client;
  3. or requests such categorisation and is an elective Professional Client, but only in respect of the services or transactions for which it could be treated as a Professional Client; and the firm has in relation to MiFID or equivalent third country business obtained express confirmation from the prospective counterparty that it agrees to be treated as an Eligible Counterparty. A firm may obtain a prospective counterparty's confirmation that it agrees to be treated as an Eligible Counterparty either in the form of a general agreement or in respect of each individual transaction.

Execution Venue - means a Regulated Market, a market maker or other liquidity provider or an entity that performs a similar function to that performed by any of the foregoing.

Financial Instruments - includes instruments specified in Section C of Annex I of MiFID, however within the context of the products the Caxton offers these are restricted to:

  • Options, futures, swaps, forward rate agreements and any other derivative contracts relating to currencies, which may be settled physically or in cash;

For clarity, "Financial Instruments" do not include spot foreign exchange transactions.

MiFID - means the Directive 2004/39/EC of the European Parliament and the Council of 21 April 2004 on Markets in Financial Instruments and any implementing directives and regulations.

Multilateral Trading Facility ('MTF') - means a multilateral system, operated by an investment firm or a market operator, which brings together multiple third-party buying and selling interests in Financial Instruments - in the system and in accordance with non-discretionary rules - in a way that results in a contract in accordance with the provisions of Title II of MiFID.

Order - means as instruction to buy or sell a Financial Instrument which is accepted by Caxton for execution or transmission to a third party.

Professional Client - The following are known as per se Professional Clients unless otherwise treated as an eligible counterparty:

1) An entity required to be authorised or regulated to operate in the financial markets. Including the following:

  • an investment firm;
  • a credit institution;
  • an insurance company;
  • an authorised Collective Investment Scheme or its management company;
  • a pension fund or its management company
  • a commodity or commodity derivatives dealer
  • any other institutional investor

2) In relation to MiFID or equivalent third country business, a large undertaking meeting two of the following size requirements on a company basis:

  • balance sheet total of EUR 20,000,000
  • net turnover of EUR 40,000,000
  • own funds of EUR 2,000,000

3) A national or regional government, a public body that manages public debt, a central bank, an international or supranational institution (such as the World Bank, the IMF etc) or another international organisation.

4) Another institutional investor whose main activity is to invest in financial instruments (in relation to the firm's MiFID or equivalent third country business) or designated investments. This includes entities dedicated to the securitisation of assets or other financial transactions.

Elective Professional Clients - firms can decide to opt-up retail clients into Professional Clients based upon an assessment of their knowledge and experience and understanding of the risks involved.

Please see the criteria laid down in Annex II of MiFID for further details.

Regulated Market - means a multilateral system operated and/or managed by a market operator which brings together or facilitates the bringing together of multiple third-party buying and selling interests in Financial Instruments - in the system and in accordance with its non-discretionary rules - in a way that results in a contract, in respect of the Financial Instruments admitted to trading under its rules and/or systems, and which is authorised and functions regularly and in accordance with the provisions of Title II of MiFID

Retail Client – means any client that is not a Professional Client or Eligible Counterparty.

 

Modern Slavery Policy

January 2020

Introduction

Caxton FX Limited (Caxton FX) is authorized and regulated by the Financial Conduct Authority.

This policy statement is issued in accordance with section 54 (1) of the UK Modern Slavery Act 2015 and relates to our financial year ending 28th February 2018

This policy document sets out Caxton FX approach to the prevention and detection of slavery and human trafficking and the controls that are applied across the business.

Governance and Oversight

This Modern Slavery policy has been reviewed and approved by the Caxton FX Board. The Board are committed to monitoring the effective implementation of the policy across the business.

This Policy is a regulatory requirement and must be made available to UK regulatory bodies upon request. It will also be published on the Caxton FX website. On occasions, this policy may also be shared with Counterparties as part of their occasional assessments of Caxton FX. 

Scope and Application

The contents of this Policy apply to all Caxton FX staff, all customers and all supply chains. All staff members are required to abide by this policy. Any breaches may be considered as a disciplinary offence. 

Roles and Responsibilities

The Board of Directors set the “tone at the top” and maintain oversight of the Anti-slavery program across the business. The Board must approve and maintain awareness of this policy and ensure that adequate resources are allocated to the Compliance function to enable delivery of the Anti-slavery program outlined below. 

Anti-Slavery Program

The subject areas detailed below form the Caxton FX Anti-Slavery program and will form the public facing policy that will be published on the Caxton FX website.

Company structure

For over 16 years Caxton FX has provided innovative FX services for both corporate and private clients in the UK and overseas from its offices in London and Swindon. The current product suite consists of prepaid currency cards, international payments and more complex FX products including forwards and options. All of our services are provided directly to the client. Caxton FX does not operate through an agent network.

Policy

Caxton FX maintains a zero-tolerance approach to slavery, human trafficking, forced labour and exploitation. We recognize the human costs of these offences and we are committed to ensuring that our business does not in any way support or encourage such activities, by acting ethically, at all times. 

Caxton’s approach to the prevention and detection of slavery and human trafficking has been integrated within our current policies and business procedures list below.

Our procurement approach
Anti-Money Laundering Policy
Anti-bribery and Corruption Policy
Staff code of conduct

Caxton FX promotes a culture of transparency, whilst acting ethically and upholding the rules and regulations relevant to the business. All staff receive training in the areas outlined above including, where appropriate, training in how to identify potentially suspicious activity that may be indicative of modern slavery. Caxton FX has a relatively limited risk appetite and chooses not to do business with a number of higher risk sectors and countries.

Our staff are recruited on salaries that are above the national minimum wage in what is a highly competitive market for the best talent. All recruitment is undertaken by our in-house recruitment team. All candidates offered a role have to prove they are eligible to work in the UK.

Caxton FX undertakes due diligence on key suppliers. In the majority of cases, for reasons of location, industry sector and the nature of our business, the modern slavery risks within our supply chain are felt to be relatively low.

All staff have access to a Whistleblowing procedure where they can raise any concerns about internal conduct in a confidential manner where they will be thoroughly investigated. All employees have unrestricted access to the People Team at all times and will be treated fairly and impartially.

All staff, including temporary contractors, must complete the Caxton AML training which provides indicators of how to identify Modern Slavery. The training must be repeated for all employees on an annual basis and updated when the legislation or processes change. This training requires all staff to report any suspicions to the Money Laundering Reporting Officer who will investigate the matter and report to the most suitable regulatory authority as appropriate.   

In the year to 28th February 2018 and the period afterwards, we undertook the following actions:

  • A review of our training materials to ensure sufficient coverage of modern slavery risks.
  • Updated our Due Diligence process to ensure modern slavery risks are covered
  • Included modern slavery risks in our country risk assessment process.

Our Plans

Our experience of assessing our exposure to Modern Slavery is that the risks of Caxton becoming involved are very low, mainly due to our robust client onboarding process and our recently enhanced supplier due diligence process.

Despite this we are not complacent and we will keep all relevant procedures under constant review.

This policy and our plans will be reviewed at least annually. Any amendments required will be signed off by the Caxton FX Board of Directors prior to publication.

Any queries should be addressed to [email protected]