Q&A · ESMA
Multilateral and bilateral systems - Systematic internalisers - Matched Principal Trading
Answered
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Matched principal trading is incompatible with operating as a systematic internaliser unless occasional or done on a trading venue, since SIs must carry the risk of their trades (a fee or commission suggests they do not); any system that facilitates matched principal trades needs authorisation as a multilateral system.
Details
| Reference | ESMA_QA_1499 |
|---|---|
| Issuer | ESMA |
| Published | 3 Feb 2021 |
| Answered | 3 Feb 2021 |
| Submitted | 3 Feb 2021 |
| ESMA topics | Multilateral and bilateral systems |
| Earlier Q&A document | ESMA 70-872942901-38 MiFID II MiFIR market structures Q&A, Q&A 5.32 |
Provisions it relates to
- Article 4 MiFID II · DefinitionsInferred · 80%
- MiFID II (whole act)Explicit reference