Pine River Capital Management L.P.
2017 Calendar Year – RTS 28 Qualitative Report

Relative factor importance 

  For all product types, prior to 3rd January 2018, the quality of research received by a counterparty was one of the primary factors used in broker selection and best execution determination.  With the implementation of MiFID II and its tighter restrictions on inducements, research is no longer accepted unless paid for separately by clients through a research payment account or directly by the firm.  Additional factors used to determine best execution in 2017 were as set forth below for the indicated product types.  Pine River attempted to list these factors in order of relative importance; however, on any given trade, the importance of one factor over another is unique to the position, timing, size and liquidity.

  Equities
  Overall costs of a transaction including commissions, mark-ups, markdowns or spreads; reputation; financial strength and stability; ongoing reliability; block trading and block positioning capabilities; circuit breakers; breadth of market coverage; market share

  Debt Instruments
  Ongoing reliability; willingness to execute difficult transactions; execution of an ISDA Master Agreement with the Firm’s clients; Anonymity of trading activity; scheduled auctions; reversion analysis; breadth of market coverage; willingness to put balance sheet at risk for non-centrally cleared OTC transactions
  
  Derivatives and Other Instruments
  Accurate and timely execution, settlement, clearance and error/dispute resolution processes; market intelligence regarding trading activity; clearing schemes; breadth of market coverage; liquidity analysis; willingness and ability to locate and/or commit capital to complete transactions; execution at a desired time for the transaction; clearing schemes; reputation, financial strength and stability

Venue conflicts
Not applicable

Venue payments
During 2017, Pine River received broker-provided research from several trading counterparties in connection with the bundled commissions paid to, and its relationships with, such brokers. Beginning in 2018, in compliance with the MiFID II general restriction on inducements, Pine River no longer accepts such non-monetary benefits unless paid for separately by clients or directly by the firm.

Venue changes
Pine River adds counterparties to its approved list from time to time based on changing market dynamics and changes to the strategies and securities in which it trades for its funds.

Client categorization
Not applicable, as all Pine River’s clients are private funds.

Retail factors
Not applicable, as Pine River has no retail clients.

Execution analysis tools
Pine River used a third-party transaction cost analysis (“TCA”) vendor and broker-provided TCAs for cash equities and equity CFD trades. The third-party TCA vendor provided daily reports and Pine River received periodic broker TCA reports, typically quarterly or semi-annually, depending on the frequency and volume of trading with the corresponding counterparty. Pine River occasionally discussed reports with TCA brokers if it needed to clarify the results or interpret the data. Pine River used the data to help identify which brokers and venues could deliver the best execution quality and to assess which broker strategies helped achieve its execution objectives at the lowest possible cost. Based on the information it received, Pine River periodically changed the level of usage of broker and algo strategies and customized algo strategies.

CTP usage
Not applicable