30 April 2018
Report for the calendar year ending 31 December 2017
MSD Partners Europe, LLP (“MSD Europe” or the “Firm”) is an investment firm authorised and regulated by the Financial Conduct Authority.
As an investment firm that provides portfolio management services to MSD Partners, L.P. (“MSD Partners”), MSD Europe is obliged to publish on its website (i) information on the top-five execution venues in terms of trading volumes where it executed client orders and (ii) the top-five investment firms in terms of trading volumes where it transmitted or placed client orders for execution in the preceding year. MSD Europe is also obliged to publish a summary of the analysis and conclusions it draws from its detailed monitoring of the quality of execution obtained on the execution venues where it executed client orders in the previous year.
MSD Europe’s sole client is MSD Partners, for which MSD Europe acts as sub-advisor with respect to the MSD European Opportunity Funds. MSD Europe has entered into a sub-advisory agreement with MSD Partners setting out the terms on which it provides investment management and advisory services to MSD Partners. The terms of the sub-advisory agreement reflect the categorization of MSD Partners as a Professional Client.
Part 1 of this report sets out data on MSD Europe’s top five execution venues and investment firms in each class of financial instruments in the form specified by Commission Delegated Regulation (EU) 2017/576 (“RTS 28”) for the calendar year ending 31 December 2017. Part 1 of this report is available to download by the public in a machine format.
Part 1 of this report refers to ‘direct’ and ‘indirect’ execution. MSD Europe uses these terms to refer to the following types of client order execution:
- (i) Direct – execution of orders by MSD Europe with a systematic internaliser, market marker, liquidity provider, or direct counterparty (such as in OTC markets);
- (ii) Indirect – transmission or placing of orders by MSD Europe with another investment firm for execution by the other firm (e.g. a broker).
For the avoidance of doubt, in the context of its portfolio management activities, MSD Europe treats decisions to deal which are made by MSD Europe on behalf of its client, MSD Partners, as constituting client orders for the purposes of this report.
Part 2 of this report sets out a summary of MSD Europe’s analysis and conclusions from its detailed monitoring of the quality of execution obtained on the execution venues and investment firms where it executed client orders.