CHAPTER IIIOPERATING CONDITIONS FOR AIFMs
SECTION 1General principles...
Article 29Aggregation and allocation of trading orders
1.
AIFMs can only carry out an AIF order in aggregate with an order of another AIF, a F1UK UCITS or a client or with an order made when investing their own funds where:
(a)
it can be reasonably expected that the aggregation of orders will not work overall to the disadvantage of any AIF, F1UK UCITS or clients whose order is to be aggregated;
(b)
an order allocation policy is established and implemented, providing in sufficiently precise terms for the fair allocation of aggregated orders, including how the volume and price of orders determines allocations and the treatment of partial executions.
2.
Where an AIFM aggregates an AIF order with one or more orders of other AIFs, F1UK UCITS or clients and the aggregated order is partially executed, it shall allocate the related trades in accordance with its order allocation policy.
3.
4.
Where an AIFM aggregates an order of an AIF, F1UK UCITS or another client with a transaction for its own account and the aggregated order is partially executed, it shall allocate the related trades to the AIF, F1UK UCITS or to clients in priority over those for own account.
However, if the AIFM is able to demonstrate to the AIF or to the client on reasonable grounds that it would not have been able to carry out the order on such advantageous terms without aggregation, or at all, it may allocate the transaction for its own account proportionally, in accordance with the policy referred to in point (b) of paragraph 1.