ESMA_QA_1598

Status: ✅ Answer Published

Link to ESMA Q&A tool: https://www.esma.europa.eu/publications-data/questions-answers/1598

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Regulatory Context

Regulation : MIF2

Level 1 Regulation: Markets in Financial Instruments Directive II (MiFID II) Directive 2014/65/EU- Secondary Markets

Level 2 Regulation: Regulation 2017/565 - MiFID II Delegated Regulation

Level 3 Regulation: No information available

Topic: Direct Electronic Access and algorithmic trading

Subject Matter: Algorithmic trading

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Question

Submission Date: 19 December 2016

If an investment firm (firm A) merely transmits a client’s order for execution to another investment firm (firm B) who uses algorithmic trading, is investment firm A engaged in algorithmic trading?

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ESMA Answer

Answer Date: 19-12-2016

[ESMA 70-872942901-38 MiFID II MiFIR market structures Q&A, Q&A 3.2] No. The transmission of an order for execution to another investment firm without performing any algorithmic trading activity is not algorithmic trading.

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This document was automatically extracted from the ESMA EMIR Q&A database.