Conflict of Interest Disclosure - GIEL
Gemini Intergalactic EU, Ltd (the “Company”) is required to establish, implement and maintain effective policies and procedures, taking into account the nature, scale and range of its crypto-asset services, to appropriately identify, prevent, manage and disclose any real, potential or perceived conflicts of interest. The Company is also required to disclose the general nature and sources of conflicts of interest, and any steps taken to mitigate them, to enable Clients to take an informed decision in the context of which a conflict of interest may arise.
The Company has established a Conflicts of Interest Policy (the “Policy”) which sets out the effective organizational and administrative arrangements implemented by the Company to identify, prevent, manage and disclose any real, potential or perceived conflicts of interest entailing a material actual or potential risk of damage to the interests of the Company and/or its clients (the “Clients”).
Identification of Conflicts
Conflicts of interest may, amongst others, arise between:
The Company and:
its shareholders or Board of Directors;
any person directly or indirectly linked to the Company (or its shareholders or members by control);
members of the Board of Directors;
its employees; or
its Clients; or
two or more Clients whose mutual interests conflict.
Prevention and Management of Conflicts of Interest
The Company has robust governance arrangements and oversight by senior management. Key decisions are taken by the Board of Directors and the head of departments, who understand the Company’s obligations under applicable law to identify, prevent, manage and disclose conflicts of interest.
The procedures and measures to prevent and/or manage conflicts of interest include:
Reporting Lines
Separate Supervision
Segregation of Functions
Board of Directors responsibilities
Risk Management and Compliance Function oversight
Access to Information restrictions
Remuneration policy
Best Execution policy
Personal Transactions restrictions
Payments, Gifts or other Forms of Inducements policy
Awareness of this Policy and Appropriate Internal Reporting Channels within the Company
Disclosure to Clients
Outside Business & Directorships oversight
Oversight of Services by Group Entities
Examples of Conflicts of Interest and Mitigation Measures
The following are scenarios of potential conflicts that may arise when taking into account the nature, scale and range of the services offered by the Company.
Conflict 1: Group Requests Beyond GIEL’s Scope
Conflict 2: Placement Services for Issuers of Crypto-Assets
Conflict 3: Execution and Routing of Orders
Description:
Under the Market Maker Model, GIEL routes orders to its affiliated matched principal entity.
Under the Executing Broker Model, orders are routed to Gemini Trust Company, LLC (an affiliate).
Both may undermine best execution principles.
Potential Impact:
Clients’ best interests may not be prioritised.
Legal, regulatory, reputational, and financial risks for GIEL.
Management Plan:
Execution Policy ensures best results for Clients.
Clients must agree to the Execution Policy before trading.
Composite pricing from multiple sources ensures fairness and consistency.
Commercial Policy ensures transparent pricing.
Monitoring Plan:
Ongoing compliance checks with Execution Policy.
Regular trade assessments (price, costs, speed, settlement).
Audits of employee adherence to execution rules.
Conflict 4: External Roles of Staff and Directors
Conflict 5: Payments, Gifts, or Inducements
Conflict 6: Remuneration Structure
Conflict 7: Staff Personal Trading of Crypto-Assets
