Treating you fairly
This section gives full details of what we do to ensure that all postings and responses on the bulletin board are genuine expressions of interest, to buy or sell, from appropriate people. It covers the policies governing the use of the Bulletin Board, our Order Execution Policy, and those governing the safekeeping of client assets. You might also be interested in our short guide on how to buy or sell on an Ethex Bulletin Board.
Bulletin Board Usage Policies
Ensuring genuine and appropriate expressions of interest
If you’re looking to buy securities on the Ethex bulletin board, we will first make sure that you have fully understood the terms and conditions of the investment and have also considered if the investment is appropriate for you. We will do this before making your post public on the bulletin board, if you’re placing a new post, or before your response to a post is sent on to the seller.
If you are looking to sell securities, we also cannot publish the post until you have given us your certificate number and we have checked on the register that the securities are registered in your name. We can usually do this immediately but it can take up to 5 working days. A post on the bulletin board will not be made public until we have checked the register.
Ensuring we have all the relevant details of your offer
When replying to an existing post on the Bulletin Board, we will check that you have provided all the relevant information including but not limited to the price and the amount you wish to buy or sell, and the reference of the post to which you are replying. If anything is missing, we won’t be able to accept the response but we will contact you to complete the missing information.
Publication of posts on the bulletin board
Ethex reserves the right to refuse to publish posts on the bulletin board. Ethex also reserves the right to remove posts from the bulletin board at any time at our absolute discretion.
Ethex performs checks before making posts live on the bulletin board or before sending responses on to the offeror. For example, Ethex will ensure that an offer meets the minimum holding required by a business (or that a seller is not left with a holding below the minimum required by a business), that your bid is not inferior to any that has previously been declined, and that your bid/offer is realistic given the recent trading price of any security (we will not permit ‘time wasting’ bids).
We will notify you by email if we remove or do not accept your post.
If you do not receive any acceptable responses to your post we will contact you every 6 months to ask you to reconfirm the details of your post.
Your commitment to proceed
Buyers and sellers must confirm the details of their trade between themselves before Ethex can facilitate any transaction.
Once a transaction has been agreed between you and your counterparty, i.e. the party who posted a bid accepts an offer, we will be notified in order that we can complete the transaction. At this point, we require you to go through with the sale or purchase and respond in a timely manner. If you do not go through with the transaction, we reserve the right to cancel your account and to cease to provide you with any Ethex services.
Our Order Execution Policy
1. Processing your instruction
We will execute orders on a non-discretionary basis in accordance with the instructions received. We will execute orders in the sequence we receive them.
Once we have received the details of your agreed trade, we will re-confirm to you the full details of that trade, and its cost including any stamp duty and fees. You should contact us immediately if any of the details are incorrect.
2. Settling the trade
If you are a seller, we will send you a stock transfer form to sign. You will need to return this to us together with your share or bond certificate. If you are a buyer, you will need to transfer the funds to us, together with any stamp duty and fees. We will not ask you to transfer funds to us until the share or bond certificate and stock transfer form have been received from the seller.
Once we have the relevant documents from the seller and the funds from the buyer, we are in a position to settle the trade. At this point we will pay any stamp duty and complete the paperwork with HMRC (when applicable), complete the paperwork with the share or bond registrar, pay any other charges and forward the value of the shares or bonds sold, less any charges, to the seller.
Once the paperwork is complete and the funds have been received, we would expect the trade to settle within two weeks. As soon as we receive notification that the transfer has been registered by the share or bond registrar, we will transfer the funds to the seller. The new share or bond certificate should be dispatched to the buyer within two weeks of completion of the trade.
We cannot complete a trade until we have both the full paperwork from the seller and the funds from the buyer. We will allow five business days from the date the stock transfer form is sent to a seller for the paperwork to be delivered to Ethex. Likewise, we will allow five business days from the request for funds to a buyer for the payment to be made to Ethex.
Should either buyer or seller fail to deliver the funds or paperwork on time, we reserve the right not to settle the trade. We also give the non-offending party the right to cancel the trade
Holding on to your funds and assets
All share certificates, bond certificates and signed stock transfer forms held by us will be held securely in our office.
We will not request funds from a buyer until we have received the share or bond certificates and signed stock transfer forms from the seller.
All client funds held by Ethex are held in a segregated client account.
The Ethex team are here to help from 9am to 5pm
01865 403 304