TRANSACTION COST CALCULATIONS IN ACCORDANCE WITH THE PRIIPS AND MIFID II REGULATIONS–
To meet regulatory reporting and transparency obligations
As of January 2018, the complex regulatory PRIIPs and MiFID II regulations require the disclosure of “packaged” product information by insurance companies, distributors and asset managers who supply them. The aim is to provide investors with improved understanding and comparability in terms of risks, performance and costs of the products. In this context, different market practices have emerged for the determination of transaction costs. For example, several methods can be used until 2020 for the indicated indirect or implicit transaction costs and are represented by our applications and services.
The full PRIIPs or arrival price method calculates the cost as the difference between the market price for the order task and the execution price.
The estimation or new PRIIPs method, which is valid until 2020, determines the average spreads of associated benchmarks or uses base point tables, which are determined by asset management organisations based on ETFs.