Requirement (MIFID)
Article 24 Transactions executed with eligible counterparties
Requirements MIFID - DIRECTIVE 2004/39/EC
Description
Description
1. Member States shall ensure that investment firms authorised to
execute orders on behalf of clients and/or to deal on own account and/or
to receive and transmit orders, may bring about or enter into transactions
with eligible counterparties without being obliged to comply with the
obligations under Articles 19, 21 and 22(1) in respect of those transactions
or in respect of any ancillary service directly related to those transactions.
2. Member States shall recognise as eligible counterparties for the
purposes of this Article investment firms, credit institutions, insurance
companies, UCITS and their management companies, pension funds and
their management companies, other financial institutions authorised or
regulated under Community legislation or the national law of a Member
State, undertakings exempted from the application of this Directive
under Article 2(1)(k) and (l), national governments and their corresponding
offices including public bodies that deal with public debt,
central banks and supranational organisations.
Classification as an eligible counterparty under the first subparagraph
shall be without prejudice to the right of such entities to request, either
on a general form or on a trade-by-trade basis, treatment as clients
whose business with the investment firm is subject to Articles 19, 21
and 22.
3. Member States may also recognise as eligible counterparties other
undertakings meeting pre-determined proportionate requirements,
including quantitative thresholds. In the event of a transaction where the
prospective counterparties are located in different jurisdictions, the
investment firm shall defer to the status of the other undertaking as
determined by the law or measures of the Member State in which that
undertaking is established.
Member States shall ensure that the investment firm, when it enters into
transactions in accordance with paragraph 1 with such undertakings,
obtains the express confirmation from the prospective counterparty that
it agrees to be treated as an eligible counterparty. Member States shall
allow the investment firm to obtain this confirmation either in the form
of a general agreement or in respect of each individual transaction....
Referenced requirement
Article 50 Eligible counterparties