ESMA_QA_1620

Status: ✅ Answer Published

Link to ESMA Q&A tool: https://www.esma.europa.eu/publications-data/questions-answers/1620

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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: No information available

Level 3 Regulation: ESMA70-872942901-38 - Q&A on MiFID II and MiFIR market structures topics

Topic: Direct Electronic Access and algorithmic trading

Subject Matter: Authorisation as an investment firm under MiFID II to provide DEA to an EU trading venue

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Question

Submission Date: 15 November 2017

Does a firm need to be authorised as an investment firm under MiFID II to provide DEA to an EU trading venue?

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ESMA Answer

Answer Date: 15-11-2017

[ESMA 70-872942901-38 MiFID II MiFIR market structures Q&A, Q&A 3.25] Yes, Article 48(7) of MiFID II provides that trading venues should only permit a member or participant to provide DEA “if they are investment firms authorised under [MiFID II] or credit institution authorised under Directive 2013/36/EU”. Therefore, non-EU firms (including non-EU firms licensed in an equivalent jurisdiction) or EU firms without a MiFID II licence are not allowed to provide DEA to their clients. This applies regardless of where the clients using the DEA service are located.

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