Requirement (MIFID)
Article 25 Execution of orders by systematic internalisers
Requirements MIFID - REGULATION (EC) No 1287/2006
Description
Description
1. For the purposes of the fifth subparagraph of Article 27(3)
of Directive 2004/39/EC, execution in several securities shall be
regarded as part of one transaction if that one transaction is a
portfolio trade that involves 10 or more securities.
For the same purposes, an order subject to conditions other than
the current market price means any order which is neither an
order for the execution of a transaction in shares at the prevailing
market price, nor a limit order.
2. For the purposes of Article 27(6) of Directive 2004/39/EC,
the number or volume of orders shall be regarded as
considerably exceeding the norm if a systematic internaliser
cannot execute those orders without exposing itself to undue
risk.
In order to identify the number and volume of orders that it can
execute without exposing itself to undue risk, a systematic
internaliser shall maintain and implement as part of its risk
management policy under Article 7 of Commission Directive
2006/73/EC (1) a non-discriminatory policy which takes into
account the volume of the transactions, the capital that the firm
has available to cover the risk for that type of trade, and the
prevailing conditions in the market in which the firm is
operating.
3. Where, in accordance with Article 27(6) of Directive 2004/
39/EC, an investment firm limits the number or volume of
orders it undertakes to execute, it shall set out in writing, and
make available to clients and potential clients, the arrangements
designed to ensure that such a limitation does not result in the
discriminatory treatment of clients.
Comment
Applies to Fifth subparagraph of Article 27(3) and Article 27(6) of Directive 2004/39/EC