Research Communication

This communication has been prepared and distributed by Cantor Fitzgerald Europe (“CFE”). CFE is authorised and regulated by the Financial Conduct Authority (“FCA”).

The CFE Tracker Quants team produces research as per the definition of the Financial Conduct Authority (FCA) – henceforth described as ’CFE Research’.

• CFE Research is considered as a Marketing Communication and Non-Independent Research as per the definitions set by FCA.
• CFE Research is not Investment Research and has not been prepared in accordance with legal requirements designed to promote investment research independence.
• CFE Research contains Investment Recommendations as per Market Abuse Regulation (MAR)
• CFE has a Conflicts of Interest Policy and procedures in place to manage and mitigate any actual or perceived conflicts which may arise in the production of CFE Research

Conflicts of Interest

• The CFE Research authors (also known as “Research Analysts” who prepared this communication confirms that the views expressed herein accurately reflect the analyst’s personal views about the subject security or securities contained in this research note and that no part of the analyst’s compensation was, is or will be directly or indirectly related to the specific recommendation or views contained in this research note.
• The Research Analysts may benefit from bonus arrangements which are derived from total commission revenues generated from CFE’s business in the sector as a whole.
• CFE, its employees and affiliates may have a financial interest in the security or securities described in this research note or otherwise buy, make markets in, hold trade or sell any security or securities described herein or provide services to issuers discussed herein.

Research Methodology

CFE Research is produced based on the analysis of publicly available data and index provider data obtained through the CFE’s subscription licenses or third party provider data using a proprietary research model. There is no communication with issuers of financial instruments before or after publication.

Research Disclosures

• CFE Research Analysts are Certified Persons under the FCA’s Senior Managers and Certification Regime (SMCR) and attest that CFE Research is fair, clear and not misleading
• No representation or warranty is made as to the accuracy or completeness of this information and opinions expressed may be subject to change without notice.
• Any or all forward-looking statements in this research note may prove to be incorrect and such statements may be affected by inaccurate assumptions or by known or unknown risks and uncertainties.
• CFE does not undertake any obligation to revise such forward-looking statements to reflect the occurrence of unanticipated events or changed circumstances.
• Predictions set forth herein are based on assumptions that may not be correct or otherwise realised.
• This research note is designed for information purposes only and neither the information contained herein nor any opinion expressed is deemed to constitute an offer or invitation to make an offer, to buy or sell any financial instruments.
• CFE Research is issued on the basis that CFE is not acting in a fiduciary capacity.
• CFE Research is issued without regard to the recipient’s specific investment objectives and the value of any security, or the income derived from it, may fluctuate.
• Where a security is denominated in a currency other than the local currency of the recipient, changes in exchange rates may have an adverse effect on the value of the security.
• Past performance is not necessarily a guide to future performance.
• CFE Research is only intended for recipients that are classified as Professional Clients and Eligible Counterparties as per the definition of the FCA. It is strictly not intended for Retail Clients.
• CFE Research note is intended for the named recipient(s) only. It may not be distributed to any other party without the express permission of CFE. All rights reserved.

MiFID II – Disclosures

• CFE allocates valuable resources to produce CFE Research, is substantive, technical and could not be produced by a lay person
• CFE Research content which contains predictions on the future of financial instruments is classed as a major non-monetary benefit under MiFID II. This is a chargeable offering to MIFD II in-scope Investment Firms.
• CFE Research content which contains only confirmation of index changes with no predictions is a minor non-monetary benefit under MiFID II.

Market Abuse Regulation – Disclosures

• An ADD event means we expect the financial instrument to be included in the stated index. The relevant financial instruments will therefore, all other things being equal become more liquid and may represent a buying opportunity for investors.
• A DELETE event means we expect the financial instrument to be included in the stated index. The relevant financial instruments will therefore, all other things being equal become more liquid in the short term due to investors selling when it leaves the respective index.
• The frequency of recommendations and updates to recommendation varies according to the index being assessed and rebalance timelines.
• If a recommendation in an instrument has changed within the last twelve months, this is not stated in CFE Research disclosures because the recommendations are distinct and CFE does not provide ongoing coverage of any specific instruments but instead all securities traded on all major indices globally.
• No persons other than authors of CFE Research (“Research Analysts”) and the CFE Compliance department have access to research recommendation content prior to publication.

Canadian Recipients

CFE relies on an International Dealer Exemption (IDE) to lawfully distribute CFE Research into certain provinces and territories in Canada.

United States Recipients

CFE Research is intended for distribution in the United States solely to “major U.S. institutional investors” (as such term is defined in Rule 15a-6 of the U.S. Securities Exchange Act of 1934 and applicable interpretations relating thereto) and is not intended for the use of any person or entity that is not a major institutional investor. This material is intended solely for institutional investors and investors who Cantor Fitzgerald & Co. reasonably believes are institutional investors. It is prohibited for distribution to non-institutional clients including retail clients, private clients and individual investors. Major Institutional Investors receiving this research note should effect transactions in securities discussed in this research note through Cantor Fitzgerald & Co. This communication has been prepared in whole or in part by persons employed by non-US affiliates of Cantor Fitzgerald & Co that are not registered as broker-dealers in the United States. These persons are not registered as Associated Persons of Cantor Fitzgerald & Co. but have an exemption under SEC Rule 15a-6 as Foreign Associated Persons of CFE that are permitted to solicit and market to major U.S. institutional investors.

 
Information for Australian Investors

This communication is distributed in Australia by CFE which is exempt from the requirement to hold an Australian financial services licence under the Corporations Act pursuant to ASIC Corporations (Foreign Financial Services Providers Limited Connection) Instrument 2017/182 and any information set out in this communication is only intended for persons who are Wholesale Investors as described in Section 761G of the Corporations Act 2001 (as amended). It is not intended to for any other class of persons and may not be relied upon by such persons and is therefore not intended for private individuals or those who would be classified as Retail Clients.

Information to Canadian Investors

CFE has International Dealer Exemptions to conduct business with the counterparties in the following Canadian provinces and territories: Alberta, British Columba, Newfoundland and Labrador, Nova Scotia, Ontario and Yukon only. This communication is not intended for any Canadian institutional investors outside of the above provinces and territories. This communication is not intended for any non-institutional investors in Canada.

Information for Hong Kong Investors

These materials have been provided by Cantor Fitzgerald (Hong Kong) Capital Markets Limited (“CFHK”) or its affiliates (including, but not limited, to Cantor Fitzgerald Europe) for informational purposes in connection with an actual or potential transaction(s) and may not be relied upon for any purposes. It is not an offer to buy or sell or a solicitation to the public or otherwise of an offer to buy or sell any security, loan or asset or to participate in any trading strategy. These materials are not investment advice and do not constitute a personal investment advice with reference to any of your personal circumstances. Sources of information are believed to be reliable, but neither CFHK nor any of its affiliates make any representation or warranty, express or implied, as to the accuracy or completeness of the information contained herein, and nothing contained herein shall be relied upon as a promise or representation whether as to the past or future performance. In Hong Kong, these materials have been distributed only to persons who are “Professional Investors” as defined under the Securities and Futures Ordinance (Cap 571) and the Securities and Futures (Professional Investor) Rules (Cap 571D) (“Professional Investor Rules”). If the recipient has received this document in Hong Kong, it confirms that it is a Professional Investor. By accepting this document, you confirm that these materials must not be acted upon in Hong Kong by persons who are not Professional Investors. CFHK is authorized and regulated by the Securities and Futures Commission in conduct Type 1(Dealing in Securities), Type 2 (Dealing in Futures Contracts), Type 4 (Advising on Securities) and Type 6 (Advising on Corporate Finance) regulated activities.

Information for Singapore Investors

CFE is a foreign related entity of Cantor Fitzgerald Singapore (CFSG) which is regulated by the Monetary Authority of Singapore (MAS). A per paragraph 9 of the Third Schedule to the Securities and Futures Act, Chapter 289 of Singapore (“SFA”), CFE is permitted to carry on certain regulated activity without being licensed or exempted in Singapore. This includes dealing in capital market products, the marketing of securities and advising on corporate finance. This communication is only intended for institutional investors in Singapore.

Information for South African Investors

The information furnished in this report, document or communication (The communication) has been prepared by CFE This communication does not constitute a recommendation, legal advice or ‘advice’ as contemplated in the Financial Markets Act 19 of 2012 and/or The Financial Advisory and Intermediary Services Act 37 of 2002, it is not to be relied upon when making investment or other decisions. This communication may not be seen as an offer to conclude a transaction. Regarding the information, CFE does not guarantee accuracy or completeness and accepts no liability thereto. This material is intended for banks and institutional clients (Professional clients), not for retail or non-institutional clients. This message contains confidential information and is intended only for the addressee. This information is not to be redistributed or copied without prior written consent.’

Information for Turkish Investors

This marketing communication may be distributed by CFE persons in the United Kingdom into Turkey. CFE is not a registered broker-dealer in Turkey, its persons are not licensed by Capital Markets Licensing Registry and Training Agency Inc. This marketing communication is out of the scope of CMB’s Law and Communiqué III-37.1.

Data Privacy

For further information about the way we use your personal data please see our Third Party Privacy Notice see  www.cantor.com/global/europe/notices/ or at such other place as we may provide notice of from time to time. We may contact you about industry news, offers and information relating to our products and services which we think would be of interest to You. You can tell us you do not wish to receive such communications by DPM@Cantor.co.uk.