Requirement (MIFID)
Article 14 Trading process and finalisation of transactions in an MTF
Requirements MIFID - DIRECTIVE 2004/39/EC
Description
Description
1. Member States shall require that investment firms or market operators
operating an MTF, in addition to meeting the requirements laid
down in Article 13, establish transparent and non-discretionary rules and
procedures for fair and orderly trading and establish objective criteria
for the efficient execution of orders.
2. Member States shall require that investment firms or market operators
operating an MTF establish transparent rules regarding the criteria
for determining the financial instruments that can be traded under its
systems.
Member States shall require that, where applicable, investment firms or
market operators operating an MTF provide, or are satisfied that there is
access to, sufficient publicly available information to enable its users to
form an investment judgement, taking into account both the nature of
the users and the types of instruments traded.
3. Member States shall ensure that Articles 19, 21 and 22 are not
applicable to the transactions concluded under the rules governing an
MTF between its members or participants or between the MTF and its
members or participants in relation to the use of the MTF. However, the
members of or participants in the MTF shall comply with the obligations
provided for in Articles 19, 21 and 22 with respect to their clients when,
acting on behalf of their clients, they execute their orders through the
systems of an MTF.
4. Member States shall require that investment firms or market operators
operating an MTF establish and maintain transparent rules, based
on objective criteria, governing access to its facility. These rules shall
comply with the conditions established in Article 42(3).
5. Member States shall require that investment firms or market operators
operating an MTF clearly inform its users of their respective responsibilities
for the settlement of the transactions executed in that facility.
Member States shall require that investment firms or market operators
operating an MTF have put in place the necessary arrangements to facilitate
the efficient settlement of the transactions concluded under the
systems of the MTF.
6. Where a transferable security, which has been admitted to trading
on a regulated market, is also traded on an MTF without the consent of
the issuer, the issuer shall not be subject to any obligation relating to
initial, ongoing or ad hoc financial disclosure with regard to that MTF.
7. Member States shall require that any investment firm or market
operator operating an MTF comply immediately with any instruction
from its competent authority pursuant to Article 50(1) to suspend or
remove a financial instrument from trading.