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Tra
nsp
osit
ion
No
te:
Dir
ecti
ve 2
014/6
5/E
U o
f th
e E
uro
pean
Parl
iam
en
t an
d o
f th
e C
ou
ncil o
f 15 M
ay 1
014 o
n m
ark
ets
in
fin
an
cia
l
instr
um
en
ts
Th
is n
ote
acco
mp
an
ies t
he F
inan
cia
l S
erv
ices a
nd
Mark
ets
Act
2000 (
Mark
ets
in
Fin
an
cia
l In
str
um
en
ts)
Reg
ula
tio
ns 2
017
Abbre
via
tions
FS
MA
– t
he F
inancia
l S
erv
ices a
nd M
ark
ets
Act
2000
HM
T –
HM
Tre
asury
MiF
ID II – D
irective 2
014/6
5/E
U o
f th
e E
uro
pean P
arlia
ment
and o
f th
e C
ouncil
of
15 M
ay 2
014 o
n m
ark
ets
in f
inancia
l in
str
um
ents
MiF
IR –
Reg
ula
tion (
EU
) 600/2
014 o
f th
e E
uro
pean P
arlia
ment and o
f th
e C
ouncil
of
15 M
ay 2
014 o
n m
ark
ets
in f
inancia
l in
str
um
ents
RR
R -
The F
inancia
l S
erv
ices a
nd M
ark
ets
Act 2000 (
Recog
nitio
n R
eq
uirem
ents
for
Investm
ent E
xchang
es a
nd C
learing H
ouses)
Reg
ula
tions
2001 (
S.I.
2001/9
95).
RR
R (
S)
- T
he S
chedule
to the F
inancia
l S
erv
ices a
nd M
ark
ets
Act 2000 (
Recog
nitio
n R
eq
uirem
ents
for
Investm
ent E
xchang
es a
nd C
learing
Houses)
Reg
ula
tions 2
001.
QE
PO
– T
he F
inancia
l S
erv
ices a
nd M
ark
ets
Act 2000 (
Qualif
yin
g E
U P
rovis
ions)
Ord
er
2013
This
Tra
nspositio
n N
ote
has b
een p
repare
d b
y H
M T
reasury
. T
he table
belo
w e
xpla
ins h
ow
the F
inancia
l S
erv
ices a
nd M
ark
ets
Act 2000
(Mark
ets
in F
inancia
l In
str
um
ents
) R
eg
ula
tions 2
017 tra
nspose c
ert
ain
pro
vis
ions o
f M
iFID
II. P
lease n
ote
that
MiF
ID I
I is
based o
n (
and
repeals
) D
irective 2
004/3
9/E
C (
MiF
ID I
) and c
onta
ins v
ery
sim
ilar
(and in s
om
e c
ases identically
wo
rded)
pro
vis
ions.
MiF
ID I h
as b
een
imple
mente
d in U
nited K
ing
dom
law
and t
hese R
eg
ula
tions c
onta
in n
um
ero
us m
inor
am
endm
ents
to p
rovis
ions o
f U
nited K
ing
dom
law
that
imple
mente
d o
r cro
ss-r
efe
rred t
o M
iFID
I t
o u
pdate
the r
efe
rences s
o t
hey s
till
function n
ow
MiF
ID I
has b
een r
epla
ced. T
he table
only
sets
out
where
the R
eg
ula
tions tra
nspose s
ubsta
ntially
new
pro
vis
ions o
r oblig
ations u
nder
MiF
ID I
I
2
AR
TIC
LE
T
EX
T
TR
AN
SP
OS
ITIO
N I
N F
INA
NC
IAL
S
ER
VIC
ES
AN
D M
AR
KE
TS
AC
T
2000 (
MA
RK
ET
S I
N F
INA
NC
IAL
IN
ST
RU
ME
NT
S)
RE
GU
LA
TIO
NS
2017
RE
SP
ON
SIB
LE
B
OD
Y
Art
icle
1(4
)(b)
of
MiF
ID I
I T
he f
ollo
win
g p
rovis
ions s
hall
als
o a
pply
to investm
ent firm
s
and t
o c
redit institu
tions a
uth
orised u
nder
Directive
2013/3
6/E
U w
hen s
elli
ng o
r advis
ing
clie
nts
in r
ela
tion t
o
str
uctu
red d
eposits:
(a)
…
(b)
Art
icle
s 2
3 t
o 2
6, A
rtic
le 2
8 a
nd A
rtic
le 2
9,
exclu
din
g the
second s
ubpara
gra
ph o
f para
gra
ph 2
there
of, a
nd A
rtic
le
30;
[only
rele
vant
text re
pro
duced h
ere
]
Para
gra
phs 2
and 3
of
Schedule
2
am
endin
g s
ection 3
9 a
nd 3
9A
F
SM
A (
in r
ela
tion to the u
nderlin
ed
text)
HM
T
Art
icle
1(5
) of
MiF
ID I
I A
rtic
le 1
7(1
) to
(6)
shall
als
o a
pply
to m
em
bers
or
part
icip
ants
of
reg
ula
ted m
ark
ets
and M
TF
s w
ho a
re n
ot re
quired to b
e
auth
orised u
nder
this
Directive p
urs
uant to
poin
ts (
a),
(e),
(i)
and (
j) o
f A
rtic
le 2
(1).
Part
4 (
see s
ection o
n A
rtic
le 1
7 for
deta
il)
HM
T
Art
icle
1(7
) firs
t sub-
para
gra
ph o
f M
iFID
II
All
multila
tera
l syste
ms in f
inancia
l in
str
um
ents
shall
opera
te
either
in a
ccord
ance w
ith t
he p
rovis
ions o
f T
itle
II concern
ing
M
TF
s o
r O
TF
s o
r th
e p
rovis
ions o
f T
itle
III c
oncern
ing
re
gula
ted m
ark
ets
.
Para
gra
ph 1
(15)
of
Schedule
3
insert
ing p
ara
gra
ph 9
ZD
of
the
RR
R (
S)
HM
T
Art
icle
2(1
)(c)
of
MiF
ID I
I T
his
Directive s
hall
not
apply
to:
(a)
…
(b)
…
(c)
pers
ons p
rovid
ing
an investm
ent
serv
ice w
here
that
serv
ice
is
pro
vid
ed
in
an
incid
enta
l m
anner
in
the
cours
e
of
a
pro
fessio
nal activity a
nd t
hat
activity is r
eg
ula
ted b
y leg
al or
reg
ula
tory
pro
vis
ions
or
a
code
of
eth
ics
govern
ing
the
pro
fessio
n w
hic
h d
o n
ot exclu
de the p
rovis
ion o
f th
at serv
ice;
[only
rele
vant
text re
pro
duced h
ere
]
Reg
ula
tion 4
7
Para
gra
ph 4
3 o
f S
chedule
2
am
endin
g s
ection 3
27 F
SM
A
HM
T
Art
icle
3(1
) of
MiF
ID I
I M
em
ber
Sta
tes m
ay c
hoose n
ot
to a
pply
this
Directive t
o a
ny
pers
ons f
or
whic
h t
hey a
re t
he h
om
e M
em
ber
Sta
te,
pro
vid
ed
th
at th
e a
ctivitie
s o
f th
ose p
ers
ons a
re a
uth
orised a
nd r
eg
ula
ted
at
national le
vel and t
hose p
ers
ons:
Reg
ula
tions 4
and 6
HM
T
3
AR
TIC
LE
T
EX
T
TR
AN
SP
OS
ITIO
N I
N F
INA
NC
IAL
S
ER
VIC
ES
AN
D M
AR
KE
TS
AC
T
2000 (
MA
RK
ET
S I
N F
INA
NC
IAL
IN
ST
RU
ME
NT
S)
RE
GU
LA
TIO
NS
2017
RE
SP
ON
SIB
LE
B
OD
Y
(a)
are
not
allo
wed t
o h
old
clie
nt
funds o
r clie
nt
securities a
nd
wh
ich f
or
that
reason a
re n
ot
allo
wed a
t any t
ime t
o p
lace
them
selv
es in d
ebit w
ith t
heir c
lients
;
(b)
are
not allo
wed to p
rovid
e a
ny in
vestm
ent serv
ice e
xcept th
e
reception
and
transm
issio
n
of
ord
ers
in
tr
ansfe
rable
securities and units in
colle
ctive in
vestm
ent
undert
akin
gs
and/o
r th
e p
rovis
ion o
f in
vestm
ent
advic
e in r
ela
tion t
o s
uch
financia
l in
str
um
ents
; and
(c)
in
the
cours
e
of
pro
vid
ing
th
at
serv
ice,
are
allo
wed
to
transm
it o
rders
only
to:
(i)
investm
ent
firm
s
auth
orised
in
accord
ance
with
this
D
irective;
(ii) cre
dit in
stitu
tions a
uth
orised in
accord
ance w
ith D
irective
2013/3
6/E
U;
(iii)
bra
nches
of
investm
ent
firm
s
or
of
cre
dit
institu
tions
auth
orised in
a third c
ountr
y a
nd w
hic
h a
re s
ubje
ct t
o a
nd
com
ply
w
ith
pru
dential
rule
s
consid
ere
d
by
the
com
pete
nt auth
orities to b
e a
t le
ast as s
trin
gent as those
laid
do
wn
in
this
D
irective,
in
Reg
ula
tion
(EU
) N
o
575/2
013 o
r in
Directive 2
013/3
6/E
U;
(iv)
colle
ctive in
vestm
ent
undert
akin
gs a
uth
orised u
nder
the
law
of
a M
em
ber
Sta
te t
o m
ark
et
units t
o t
he p
ublic
and
to the m
anag
ers
of
such u
ndert
akin
gs;
or
(v
) in
vestm
ent
com
panie
s w
ith f
ixed c
apital, a
s d
efined i
n
Art
icle
17(7
) of
Directive 2
012/3
0/E
U o
f th
e E
uro
pean
Parlia
ment and o
f th
e C
ouncil
( 1 )
the s
ecurities o
f w
hic
h
are
lis
ted o
r dealt in o
n a
reg
ula
ted m
ark
et
in a
Mem
ber
Sta
te;
4
AR
TIC
LE
T
EX
T
TR
AN
SP
OS
ITIO
N I
N F
INA
NC
IAL
S
ER
VIC
ES
AN
D M
AR
KE
TS
AC
T
2000 (
MA
RK
ET
S I
N F
INA
NC
IAL
IN
ST
RU
ME
NT
S)
RE
GU
LA
TIO
NS
2017
RE
SP
ON
SIB
LE
B
OD
Y
Art
icle
3(2
) of
MiF
ID I
I M
em
ber
Sta
tes’ re
gim
es s
hall
subm
it t
he p
ers
ons r
efe
rred t
o in
para
gra
ph 1
to r
eq
uirem
ents
whic
h a
re a
t le
ast analo
gous to the
follo
win
g r
eq
uirem
ents
under
this
Directive:
(a
) conditio
ns a
nd p
rocedure
s f
or
auth
orisation a
nd o
n-g
oin
g
superv
isio
n a
s e
sta
blis
hed in A
rtic
le 5
(1)
and (
3),
Art
icle
s 7
to
10,
21,
22 a
nd 2
3 a
nd t
he c
orr
espondin
g d
ele
gate
d a
cts
adopte
d b
y t
he C
om
mis
sio
n in a
ccord
ance w
ith A
rtic
le 8
9;
(b)
conduct
of
busin
ess oblig
ations as esta
blis
hed in
A
rtic
le
24(1
), (3),
(4),
(5),
(7) and (10),
Art
icle
25(2
), (5) and (6),
and,
where
the n
ational
reg
ime a
llow
s t
hose p
ers
ons t
o a
ppoin
t tied ag
ents
, A
rtic
le 29,
and th
e re
spective im
ple
menting
m
easure
s;
[only
rele
vant
text re
pro
duced h
ere
]
Para
gra
ph 2
, 3 a
nd 4
4 o
f S
chedule
2
am
endin
g s
ections 3
9, 39A
and
347(in r
ela
tion t
o t
he u
nderlin
ed
text)
HM
T
Art
icle
4(1
)(1)
of
MiF
ID I
I of
MiF
ID I
I
‘in
vestm
en
t fi
rm’
means
any
leg
al
pers
on
whose
reg
ula
r occupation
or
busin
ess
is
the
pro
vis
ion
of
one
or
more
in
vestm
ent
serv
ices t
o t
hird p
art
ies a
nd/o
r th
e p
erf
orm
ance o
f one o
r m
ore
investm
ent activitie
s o
n a
pro
fessio
nal basis
. [o
nly
rele
vant
text re
pro
duced h
ere
]
Reg
ula
tion 2
(1)
H
MT
Art
icle
4(1
)(2)
of
MiF
ID I
I
‘in
vestm
en
t serv
ices a
nd
acti
vit
ies’ m
eans a
ny o
f th
e s
erv
ices
and a
ctivitie
s lis
ted in S
ection A
of A
nnex I r
ela
ting
to a
ny o
f th
e
instr
um
ents
lis
ted in S
ection C
of
Annex I
.
Reg
ula
tion 2
(1)
Para
gra
ph 5
1(2
) of
Schedule
2
am
endin
g s
ection 4
17 F
SM
A
HM
T
Art
icle
4(1
)(10)
of
MiF
ID I
I
‘cli
en
t’
means
any
natu
ral
or
leg
al
pers
on
to
whom
an
investm
ent firm
pro
vid
es investm
ent
or
ancill
ary
serv
ices;
Reg
ula
tion 2
(1)
HM
T
Art
icle
4(1
)(12)
of
MiF
ID I
I
‘SM
E g
row
th m
ark
et’
means a
MT
F t
hat
is r
eg
iste
red a
s a
n
SM
E g
row
th m
ark
et in
accord
ance w
ith A
rtic
le 3
3;
Para
gra
ph 1
(2)
of
Schedule
3
am
endin
g r
eg
ula
tion 3
of th
e R
RR
H
MT
Art
icle
4(1
)(15)
of
MiF
ID I
I
‘fin
an
cia
l in
str
um
en
t’ m
eans th
ose in
str
um
ents
specifie
d in
S
ection C
of
Annex I
Reg
ula
tion 2
(1)
H
MT
5
AR
TIC
LE
T
EX
T
TR
AN
SP
OS
ITIO
N I
N F
INA
NC
IAL
S
ER
VIC
ES
AN
D M
AR
KE
TS
AC
T
2000 (
MA
RK
ET
S I
N F
INA
NC
IAL
IN
ST
RU
ME
NT
S)
RE
GU
LA
TIO
NS
2017
RE
SP
ON
SIB
LE
B
OD
Y
Art
icle
4(1
)(18)
of
MiF
ID I
I
‘mark
et
op
era
tor’
means a
pers
on o
r pers
ons w
ho m
anag
es
and/o
r opera
tes the b
usin
ess o
f a r
eg
ula
ted m
ark
et and m
ay b
e
the r
eg
ula
ted m
ark
et itself;
Para
gra
ph 1
(16)
of
Schedule
3
am
endin
g p
ara
gra
ph 9
A o
f th
e
RR
R (
S)
HM
T
Art
icle
4(1
)(19)
of
MiF
ID I
I
‘mu
ltil
ate
ral
syste
m’
means any syste
m or
facili
ty in
w
hic
h
multip
le
third-p
art
y
buyin
g
and
selli
ng
tradin
g
inte
rests
in
financia
l in
str
um
ents
are
able
to inte
ract
in the s
yste
m;
Para
gra
ph 1
(2)
of
Schedule
3
am
endin
g r
eg
ula
tion 3
of th
e R
RR
H
MT
Art
icle
4(1
)(20)
of
MiF
ID I
I
‘syste
mati
c i
nte
rnali
ser’
means a
n i
nvestm
ent
firm
whic
h,
on
an o
rganis
ed,
freq
uent
syste
matic a
nd s
ubsta
ntial
basis
, deals
on
ow
n
account
when
executing
clie
nt
ord
ers
outs
ide
a
reg
ula
ted
mark
et,
an
MT
F
or
an
OT
F
without
opera
ting
a
multila
tera
l syste
m;
[Full
definitio
n t
ext not re
pro
duced h
ere
]
Para
gra
ph 4
2(3
)(d)
of
Schedule
2
am
endin
g s
ection 3
13D
FS
MA
P
ara
gra
ph 1
(2)
of
Schedule
3
am
endin
g r
eg
ula
tion 3
of th
e R
RR
HM
T
Art
icle
4(1
)(22)
of
MiF
ID I
I
‘mu
ltil
ate
ral
trad
ing
fa
cilit
y’
or
‘MT
F’
means a m
ultila
tera
l syste
m,
opera
ted b
y a
n i
nvestm
ent
firm
or
a m
ark
et
opera
tor,
w
hic
h bring
s to
geth
er
multip
le th
ird-p
art
y buyin
g and selli
ng
inte
rests
in
financia
l in
str
um
ents
–
in
the
syste
m
and
in
accord
ance w
ith n
on-d
iscre
tionary
rule
s –
in a
way t
hat
results
in a
contr
act
in a
ccord
ance w
ith T
itle
II
of th
is D
irective;
Para
gra
ph 1
(16)
of
Schedule
3
am
endin
g p
ara
gra
ph 9
A o
f th
e
RR
R (
S)
HM
T
Art
icle
4(1
)(23)
of
MiF
ID I
I
‘org
an
ised
tr
ad
ing
fa
cilit
y’
or
‘OT
F’
means
a
multila
tera
l syste
m w
hic
h is n
ot a r
eg
ula
ted m
ark
et
or
an M
TF
and in w
hic
h
multip
le
third-p
art
y
buyin
g
and
selli
ng
in
tere
sts
in
bonds,
str
uctu
red f
inance p
roducts
, em
issio
n a
llow
ances o
r derivatives
are
able
to i
nte
ract
in t
he s
yste
m i
n a
way t
hat
results i
n a
contr
act
in a
ccord
ance w
ith T
itle
II of
this
Directive;
Para
gra
ph 1
(16)
of
Schedule
3
am
endin
g p
ara
gra
ph 9
A o
f th
e
RR
R (
S)
HM
T
Art
icle
4(1
)(24)
of
MiF
ID I
I
‘tra
din
g v
en
ue’ m
eans a
reg
ula
ted m
ark
et, a
n M
TF
or
an O
TF
; R
eg
ula
tion 2
(1)
P
ara
gra
ph 4
2(3
)(d)
of
Schedule
2
am
endin
g s
ection 3
13D
FM
SA
HM
T
Art
icle
4(1
)(25)
of
MiF
ID I
I
‘Liq
uid
mark
et’
means a
mark
et
for
a f
inancia
l in
str
um
ent
or
a
cla
ss o
f financia
l in
str
um
ents
, w
here
there
are
ready a
nd w
illin
g
buyers
and
selle
rs
on
a
continuous
basis
, assessed
in
Para
gra
ph 1
(2)
of
Schedule
3
am
endin
g r
eg
ula
tion 3
of th
e R
RR
H
MT
6
AR
TIC
LE
T
EX
T
TR
AN
SP
OS
ITIO
N I
N F
INA
NC
IAL
S
ER
VIC
ES
AN
D M
AR
KE
TS
AC
T
2000 (
MA
RK
ET
S I
N F
INA
NC
IAL
IN
ST
RU
ME
NT
S)
RE
GU
LA
TIO
NS
2017
RE
SP
ON
SIB
LE
B
OD
Y
accord
ance w
ith t
he f
ollo
win
g c
rite
ria,
takin
g into
consid
era
tion
the
specific
m
ark
et
str
uctu
res
of
the
part
icula
r financia
l in
str
um
ent or
of
the p
art
icula
r cla
ss o
f financia
l in
str
um
ents
:
(a)
the a
vera
ge fre
quency a
nd s
ize o
f tr
ansactions o
ver
a r
ang
e
of
mark
et
conditio
ns,
havin
g r
eg
ard
to t
he n
atu
re a
nd life c
ycle
of
pro
ducts
within
the c
lass o
f financia
l in
str
um
ent;
(b)
the n
um
ber
and t
ype o
f m
ark
et
part
icip
ants
, in
clu
din
g t
he
ratio o
f m
ark
et
part
icip
ants
to t
raded instr
um
ents
in a
part
icula
r pro
duct;
(c)
the a
vera
ge s
ize o
f spre
ads, w
here
availa
ble
; A
rtic
le
4(1
)(26)
of
MiF
ID I
I
‘co
mp
ete
nt au
tho
rity
’ m
eans the a
uth
ority
, desig
nate
d b
y e
ach
Mem
ber
Sta
te i
n a
ccord
ance w
ith A
rtic
le 6
7,
unle
ss o
therw
ise
specifie
d in t
his
Directive;
Reg
ula
tion 2
(1)
HM
T
Art
icle
4(1
)(27)
of
MiF
ID I
I
‘cre
dit
in
sti
tuti
on
’ m
eans a
cre
dit institu
tion a
s d
efined in p
oin
t (1
) of
Art
icle
4(1
) of
Regula
tion (
EU
) N
o 5
75/2
013;
Reg
ula
tion 2
(1)
H
MT
Art
icle
4(1
)(30)
of
MiF
ID I
I
‘bra
nch
’ m
eans a
pla
ce o
f busin
ess o
ther
than t
he h
ead o
ffic
e
wh
ich
is
a
part
of
an
investm
ent
firm
, w
hic
h
has
no
leg
al
pers
onalit
y
and
whic
h
pro
vid
es
investm
ent
serv
ices
and/o
r activitie
s and w
hic
h m
ay als
o perf
orm
ancill
ary
serv
ices fo
r w
hic
h the investm
ent firm
has b
een a
uth
orised; all
the p
laces o
f busin
ess s
et
up i
n t
he s
am
e M
em
ber
Sta
te b
y a
n i
nvestm
ent
firm
w
ith
headq
uart
ers
in
anoth
er
Mem
ber
Sta
te
shall
be
reg
ard
ed a
s a
sin
gle
bra
nch;
Reg
ula
tion 2
(1)
HM
T
Art
icle
4(1
)(34)
of
MiF
ID I
I
‘gro
up
’ m
eans a
gro
up a
s d
efined i
n A
rtic
le 2
(11)
of
Directive
2013/3
4/E
U;
Para
gra
ph 1
(2)
of
Schedule
3
am
endin
g r
eg
ula
tion 3
of th
e R
RR
H
MT
Art
icle
4(1
)(36)
of
MiF
ID I
I
‘man
ag
em
en
t b
od
y’
means
the
body
or
bodie
s
of
an
investm
ent
firm
, m
ark
et
opera
tor
or
data
re
port
ing
serv
ices
pro
vid
er,
whic
h a
re a
ppoin
ted i
n a
ccord
ance w
ith n
ational la
w,
Reg
ula
tion 4
4(2
)(b)
Para
gra
ph 1
(2)
of
Schedule
3
am
endin
g r
eg
ula
tion 3
of th
e R
RR
HM
T
7
AR
TIC
LE
T
EX
T
TR
AN
SP
OS
ITIO
N I
N F
INA
NC
IAL
S
ER
VIC
ES
AN
D M
AR
KE
TS
AC
T
2000 (
MA
RK
ET
S I
N F
INA
NC
IAL
IN
ST
RU
ME
NT
S)
RE
GU
LA
TIO
NS
2017
RE
SP
ON
SIB
LE
B
OD
Y
w
hic
h a
re e
mpow
ere
d to s
et th
e e
ntity
’s s
trate
gy, obje
ctives a
nd
overa
ll direction,
and w
hic
h o
vers
ee a
nd m
onitor
managem
ent
decis
ion-m
akin
g a
nd inclu
de p
ers
ons w
ho e
ffectively
direct
the
busin
ess o
f th
e e
ntity
.
Where
th
is
Directive
refe
rs
to
the
manag
em
ent
body
and,
purs
uant
to
national
law
, th
e
manag
erial
and
superv
isory
fu
nctions of
the m
anagem
ent
body are
assig
ned to
diffe
rent
bodie
s o
r diffe
rent m
em
bers
within
one b
ody, th
e M
em
ber
Sta
te
shall
identify
the b
odie
s o
r m
em
bers
of
the m
anag
em
ent
body
responsib
le in
accord
ance w
ith it
s n
ational l
aw
, unle
ss o
therw
ise
specifie
d b
y t
his
Directive;
Para
gra
ph 1
of
Schedule
1
Art
icle
4(1
)(37)
of
MiF
ID I
I
‘sen
ior
man
ag
em
en
t’ m
eans natu
ral
pers
ons w
ho exerc
ise
executive functions w
ithin
an in
vestm
ent firm
, a m
ark
et opera
tor
or
a d
ata
report
ing s
erv
ices p
rovid
er
and w
ho a
re r
esponsib
le,
and a
ccounta
ble
to t
he m
anag
em
ent
body,
for
the d
ay-t
o-d
ay
manag
em
ent
of
the e
ntity
, in
clu
din
g f
or
the i
mple
menta
tion o
f th
e p
olic
ies c
oncern
ing
the d
istr
ibution o
f serv
ices a
nd p
roducts
to
clie
nts
by t
he f
irm
and its
pers
onnel;
Para
gra
ph 1
of
Schedule
1
Para
gra
ph 1
(2)
of
Schedule
3
am
endin
g r
eg
ula
tion 3
of th
e R
RR
HM
T
Art
icle
4(1
)(38)
of
MiF
ID I
I
‘matc
hed
pri
ncip
al
trad
ing
’ m
eans a
tra
nsaction w
here
the
facili
tato
r in
terp
oses i
tself b
etw
een t
he b
uyer
and t
he s
elle
r to
th
e t
ransaction in s
uch a
wa
y t
hat
it is n
ever
exposed t
o m
ark
et
risk thro
ug
hout th
e e
xecution o
f th
e tra
nsaction, w
ith b
oth
sid
es
execute
d
sim
ultaneously
, and
where
th
e
transaction
is
conclu
ded a
t a p
rice w
here
the facili
tato
r m
akes n
o p
rofit or
loss,
oth
er
than a
pre
vio
usly
dis
clo
sed c
om
mis
sio
n, fe
e o
r charg
e f
or
the tra
nsaction;
Para
gra
ph 1
(2)
of
Schedule
3
am
endin
g r
eg
ula
tion 3
of th
e R
RR
H
MT
Art
icle
4(1
)(39)
of
MiF
ID I
I
‘alg
ori
thm
ic tr
ad
ing
’ m
eans tr
adin
g in
financia
l in
str
um
ents
w
here
a c
om
pute
r alg
orith
m a
uto
matically
dete
rmin
es in
div
idual
para
mete
rs o
f ord
ers
such a
s w
heth
er
to i
nitia
te t
he o
rder,
the
tim
ing, price o
r q
uantity
of th
e o
rder
or
how
to m
anag
e the o
rder
Para
gra
ph 1
(2)
of
Schedule
3
am
endin
g r
eg
ula
tion 3
of th
e R
RR
H
MT
8
AR
TIC
LE
T
EX
T
TR
AN
SP
OS
ITIO
N I
N F
INA
NC
IAL
S
ER
VIC
ES
AN
D M
AR
KE
TS
AC
T
2000 (
MA
RK
ET
S I
N F
INA
NC
IAL
IN
ST
RU
ME
NT
S)
RE
GU
LA
TIO
NS
2017
RE
SP
ON
SIB
LE
B
OD
Y
aft
er
its s
ubm
issio
n,
with lim
ited o
r no h
um
an inte
rvention,
and
does n
ot in
clu
de a
ny s
yste
m that is
only
used for
the p
urp
ose o
f ro
uting
ord
ers
to
one
or
more
tr
adin
g
venues
or
for
the
pro
cessin
g o
f ord
ers
involv
ing
no d
ete
rmin
ation o
f any t
radin
g
para
mete
rs o
r fo
r th
e c
onfirm
ation o
f ord
ers
or
the p
ost-
trade
pro
cessin
g o
f execute
d tra
nsactions;
Art
icle
4(1
)(40)
of
MiF
ID I
I
‘hig
h-f
req
uen
cy alg
ori
thm
ic tr
ad
ing
te
ch
niq
ue’
means an
alg
orith
mic
tra
din
g t
echniq
ue c
hara
cte
rised b
y:
(a)
infr
astr
uctu
re inte
nded t
o m
inim
ise n
etw
ork
and o
ther
types
of
late
ncie
s,
inclu
din
g a
t le
ast
one o
f th
e f
ollo
win
g f
acili
ties f
or
alg
orith
mic
ord
er
entr
y:
co-location,
pro
xim
ity h
osting o
r hig
h-
speed d
irect
ele
ctr
onic
access;
(b)
syste
m-d
ete
rmin
ation o
f ord
er
initia
tion,
genera
tion,
routing
or
execution w
ithout
hum
an inte
rvention f
or
indiv
idua
l tr
ades o
r ord
ers
; and
(c)
hig
h m
essag
e intr
aday r
ate
s w
hic
h c
onstitu
te o
rders
, q
uote
s
or
cancella
tions;
Para
gra
ph 1
(2)
of
Schedule
3
am
endin
g r
eg
ula
tion 3
of th
e R
RR
H
MT
Art
icle
4(1
)(41)
of
MiF
ID I
I
‘dir
ect
ele
ctr
on
ic
access
means
an
arr
ang
em
ent
where
a
mem
ber
or
part
icip
ant
or
clie
nt
of
a t
radin
g v
enue p
erm
its a
pers
on t
o u
se its
tra
din
g c
ode s
o t
he p
ers
on c
an e
lectr
onic
ally
tr
ansm
it o
rders
rela
ting
to a
fin
ancia
l in
str
um
ent
directly t
o t
he
tradin
g v
enue a
nd in
clu
des a
rrang
em
ents
whic
h involv
e the u
se
by a
pers
on o
f th
e infr
astr
uctu
re o
f th
e m
em
ber
or
part
icip
ant or
clie
nt,
or
any c
onnecting s
yste
m p
rovid
ed b
y t
he m
em
ber
or
part
icip
ant or clie
nt, to tra
nsm
it the o
rders
(direct m
ark
et access)
and a
rrang
em
ents
where
such a
n in
frastr
uctu
re is
not used b
y a
pers
on (
sponsore
d a
ccess);
Reg
ula
tion 2
(1)
Para
gra
ph 1
(2)
of
Schedule
3
am
endin
g r
eg
ula
tion 3
of th
e R
RR
HM
T
Art
icle
4(1
)(45)
of
MiF
ID I
I
‘dep
osit
ary
re
ceip
ts’
means
those
securities
whic
h
are
neg
otiable
on the c
apital m
ark
et and w
hic
h r
epre
sent ow
ners
hip
of th
e s
ecurities o
f a n
on-d
om
icile
d is
suer
while
be
ing
able
to b
e
Para
gra
ph 1
(2)
of
Schedule
3
am
endin
g r
eg
ula
tion 3
of th
e R
RR
H
MT
9
AR
TIC
LE
T
EX
T
TR
AN
SP
OS
ITIO
N I
N F
INA
NC
IAL
S
ER
VIC
ES
AN
D M
AR
KE
TS
AC
T
2000 (
MA
RK
ET
S I
N F
INA
NC
IAL
IN
ST
RU
ME
NT
S)
RE
GU
LA
TIO
NS
2017
RE
SP
ON
SIB
LE
B
OD
Y
adm
itte
d
to
tradin
g
on
a
reg
ula
ted
mark
et
and
traded
independently o
f th
e s
ecurities o
f th
e n
on-d
om
icile
d issuer;
A
rtic
le
4(1
)(46)
of
MiF
ID I
I
‘exch
an
ge-t
rad
ed
fu
nd
’ m
eans a
fund o
f w
hic
h a
t le
ast one u
nit
or
share
cla
ss i
s t
raded t
hro
ug
hout
the d
ay o
n a
t le
ast
one
tradin
g v
enue a
nd w
ith a
t le
ast
one m
ark
et
maker
whic
h t
akes
action to e
nsure
that th
e p
rice o
f its u
nits o
r share
s o
n the tra
din
g
venue d
oes n
ot
vary
sig
nific
antly f
rom
its
net
asset
valu
e a
nd,
where
applic
able
, fr
om
its
indic
ative n
et
asset valu
e;
Para
gra
ph 1
(2)
of
Schedule
3
am
endin
g r
eg
ula
tion 3
of th
e R
RR
H
MT
Art
icle
4(1
)(48)
of
MiF
ID I
I
‘str
uctu
red
fi
nan
ce
pro
du
cts
’ m
eans
str
uctu
red
finance
pro
ducts
as d
efined i
n A
rtic
le 2
(1)(
28)
of
Reg
ula
tion (
EU
) N
o
600/2
014;
Para
gra
ph 1
(2)
of
Schedule
3
am
endin
g r
eg
ula
tion 3
of th
e R
RR
H
MT
Art
icle
4(1
)(50)
of
MiF
ID I
I
‘co
mm
od
ity
deri
vati
ve
s’
means
com
modity
derivatives
as
defined in A
rtic
le 2
(1)(
30)
of
Reg
ula
tion (
EU
) N
o 6
00/2
014;
Reg
ula
tion 2
(1)
Para
gra
ph 1
(2)
of
Schedule
3
am
endin
g r
eg
ula
tion 3
of th
e R
RR
HM
T
Art
icle
4(1
)(57)
of
MiF
ID I
I
‘th
ird
-co
un
try
firm
’ m
eans
a
firm
th
at
would
be
a
cre
dit
institu
tion
pro
vid
ing
in
vestm
ent
serv
ices
or
perf
orm
ing
investm
ent
activitie
s o
r an i
nvestm
ent
firm
if
its h
ead o
ffic
e o
r re
gis
tere
d o
ffic
e w
ere
locate
d w
ithin
the U
nio
n;
Reg
ula
tion 2
(1)
Para
gra
ph 1
(2)
of
Schedule
3
am
endin
g r
eg
ula
tion 3
of th
e R
RR
HM
T
Art
icle
4(1
)(61)
of
MiF
ID I
I
‘so
vere
ign
d
eb
t’
means
a
debt
instr
um
ent
issued
by
a
sovere
ign issuer;
P
ara
gra
ph 1
(2)
of
Schedule
3
am
endin
g r
eg
ula
tion 3
of th
e R
RR
H
MT
Art
icle
5(2
) of
MiF
ID I
I B
y w
ay o
f dero
gation f
rom
para
gra
ph 1
, M
em
ber
Sta
tes s
hall
auth
orise a
ny m
ark
et
opera
tor
to o
pera
te a
n M
TF
or
an O
TF
, subje
ct
to th
e prior
verification of
their com
plia
nce w
ith th
is
Chapte
r. [
Chapte
r 1 o
f T
itle
II]
Para
gra
ph 2
3 to 2
8 o
f S
chedule
2
am
endin
g P
art
15 F
SM
A (
in
rela
tion t
o c
om
plia
nce w
ith A
rtic
le
14 o
f C
hapte
r 1 o
f T
itle
II)
P
ara
gra
ph 1
(16)
of
Schedule
3
am
endin
g p
ara
gra
ph 9
A o
f th
e
RR
R (
S)
HM
T
Art
icle
5(3
) of
MiF
ID I
I M
em
ber
Sta
tes s
hall
regis
ter
all
investm
ent
firm
s.
The r
eg
iste
r shall
be p
ublic
ly a
ccessib
le a
nd s
hall
conta
in info
rmation o
n the
Para
gra
ph 4
4 o
f S
chedule
2
am
endin
g s
ection 3
47 F
SM
A
HM
T
10
AR
TIC
LE
T
EX
T
TR
AN
SP
OS
ITIO
N I
N F
INA
NC
IAL
S
ER
VIC
ES
AN
D M
AR
KE
TS
AC
T
2000 (
MA
RK
ET
S I
N F
INA
NC
IAL
IN
ST
RU
ME
NT
S)
RE
GU
LA
TIO
NS
2017
RE
SP
ON
SIB
LE
B
OD
Y
serv
ices o
r activitie
s for
wh
ich the in
vestm
ent firm
is a
uth
orised.
It s
hall
be u
pdate
d o
n a
reg
ula
r basis
. E
very
auth
orisation s
hall
be n
otified to E
SM
A.
Where
a c
om
pete
nt auth
ority
has w
ithdra
wn a
n a
uth
orisation in
accord
ance
with
poin
ts
(b),
(c
) and
(d)
of
Art
icle
8,
that
withdra
wal
shall
be p
ublis
hed o
n t
he l
ist
for
a p
eriod o
f five
years
.
[only
rele
vant
text re
pro
duced h
ere
] A
rtic
le 8
(d)
of
MiF
ID I
I T
he c
om
pete
nt
auth
ority
may w
ithdra
w t
he a
uth
orisation issued
to a
n investm
ent firm
wh
ere
such a
n investm
ent firm
:
(a)
…
(b)
…
(c)
…
(d)
has seriously
and syste
matically
in
frin
ged th
e pro
vis
ions
adopte
d p
urs
uant
to t
his
Directive o
r R
eg
ula
tion (
EU
) N
o
600/2
014 g
overn
ing t
he o
pera
ting
conditio
ns f
or
investm
ent
firm
s;
[the f
ull
text
is n
ot re
pro
duced h
ere
]
Para
gra
ph 4
of
Schedule
2
am
endin
g s
ection 5
5K
FS
MA
H
MT
Art
icle
9(2
) of
MiF
ID I
I W
hen g
ranting t
he a
uth
orisation i
n a
ccord
ance w
ith A
rtic
le 5
, com
pete
nt
auth
orities
may
auth
orise
mem
bers
of
the
manag
em
ent
body
to
hold
one
additio
nal
non-e
xecutive
directo
rship
than a
llow
ed i
n a
ccord
ance w
ith A
rtic
le 9
1(3
) of
Directive
2013/3
6/E
U.
Com
pete
nt
auth
orities
shall
reg
ula
rly
info
rm E
SM
A o
f such a
uth
orisations.
[full
text not re
pro
duced h
ere
]
Reg
ula
tion 4
4(3
)(b)
HM
T
Art
icle
14 o
f M
iFID
II
The com
pete
nt
auth
ority
shall
verify
th
at
any entity
seekin
g
auth
orisation a
s a
n inve
stm
ent
firm
meets
its
oblig
ations u
nder
Directive 9
7/9
/EC
at th
e tim
e o
f auth
orisation.
Para
gra
ph 2
3 to 2
8 o
f S
chedule
2
am
endin
g P
art
15 F
SM
A
(tra
nsposin
g A
rtic
le 1
4 a
s it
applie
s
for
the p
urp
oses o
f A
rtic
le 5
(2))
HM
T
11
AR
TIC
LE
T
EX
T
TR
AN
SP
OS
ITIO
N I
N F
INA
NC
IAL
S
ER
VIC
ES
AN
D M
AR
KE
TS
AC
T
2000 (
MA
RK
ET
S I
N F
INA
NC
IAL
IN
ST
RU
ME
NT
S)
RE
GU
LA
TIO
NS
2017
RE
SP
ON
SIB
LE
B
OD
Y
Art
icle
17.1
(a
s a
pplie
d
by A
rtic
le
1.5
) of
MiF
ID
II
An in
vestm
ent f
irm
that eng
ag
es in
alg
orith
mic
tra
din
g s
hall
have
in
pla
ce
eff
ective
syste
ms
and
risk
contr
ols
suitable
to
th
e
busin
ess it opera
tes to
ensure
th
at
its tr
adin
g syste
ms are
re
sili
ent
and h
ave s
uff
icie
nt
capacity,
are
subje
ct
to a
ppro
priate
tr
adin
g
thre
shold
s
and
limits
and
pre
vent
the
sendin
g
of
err
oneous o
rders
or
the s
yste
ms o
therw
ise f
unctionin
g in a
wa
y
that m
ay c
reate
or
contr
ibute
to a
dis
ord
erly m
ark
et.
Such a
firm
shall
als
o h
ave i
n p
lace e
ffective s
yste
ms a
nd r
isk c
ontr
ols
to
ensure
the tra
din
g s
yste
ms c
annot be u
sed for
any p
urp
ose that
is c
ontr
ary
to R
eg
ula
tion (
EU
) N
o 5
96/2
014 o
r to
the r
ule
s o
f a
tradin
g v
enue to w
hic
h it
is c
onnecte
d. T
he in
vestm
ent firm
shall
have in
pla
ce e
ffective b
usin
ess c
ontinuity a
rrang
em
ents
to d
eal
with any fa
ilure
of
its tr
adin
g syste
ms and shall
ensure
its
syste
ms a
re f
ully
teste
d a
nd p
roperly m
onitore
d t
o e
nsure
that
they m
eet th
e r
eq
uirem
ents
laid
dow
n in t
his
para
gra
ph.
Reg
ula
tion 3
0
HM
T
Art
icle
17(2
) (a
s a
pplie
d
by A
rtic
le
1.5
) of
MiF
ID
II
An in
vestm
ent
firm
th
at
eng
ag
es in
alg
orith
mic
tr
adin
g in
a
Mem
ber
Sta
te s
hall
notify
this
to the c
om
pete
nt auth
orities o
f its
hom
e M
em
ber
Sta
te and of
the tr
adin
g venue at
whic
h th
e
investm
ent
firm
eng
ag
es in a
lgorith
mic
tra
din
g a
s a
mem
ber
or
part
icip
ant of
the tra
din
g v
enue.
T
he com
pete
nt
auth
ority
of
the hom
e M
em
ber
Sta
te of
the
investm
ent firm
may r
eq
uire the in
vestm
ent firm
to p
rovid
e, on a
re
gula
r or
ad-h
oc
basis
, a
description
of
the
natu
re
of
its
alg
orith
mic
tra
din
g s
trate
gie
s,
deta
ils o
f th
e t
radin
g p
ara
mete
rs
or
limits t
o w
hic
h t
he s
yste
m is s
ubje
ct, the k
ey c
om
plia
nce a
nd
risk c
ontr
ols
that
it h
as i
n p
lace t
o e
nsure
the c
onditio
ns l
aid
dow
n in
para
gra
ph 1
are
satisfied a
nd d
eta
ils o
f th
e testing
of its
syste
ms. T
he c
om
pete
nt auth
ority
of th
e h
om
e M
em
ber
Sta
te o
f th
e in
vestm
ent firm
may, at any tim
e, re
quest fu
rther
info
rmation
Reg
ula
tions 3
0,
31 a
nd 4
6
H
MT
12
AR
TIC
LE
T
EX
T
TR
AN
SP
OS
ITIO
N I
N F
INA
NC
IAL
S
ER
VIC
ES
AN
D M
AR
KE
TS
AC
T
2000 (
MA
RK
ET
S I
N F
INA
NC
IAL
IN
ST
RU
ME
NT
S)
RE
GU
LA
TIO
NS
2017
RE
SP
ON
SIB
LE
B
OD
Y
from
an i
nvestm
ent
firm
about
its a
lgorith
mic
tra
din
g a
nd t
he
syste
ms u
sed for
that tr
adin
g.
The com
pete
nt
auth
ority
of
the hom
e M
em
ber
Sta
te of
the
investm
ent firm
shall,
on the r
eq
uest of a c
om
pete
nt auth
ority
of
a t
radin
g v
enue a
t w
hic
h t
he i
nvestm
ent
firm
as a
mem
ber
or
part
icip
ant of th
e tra
din
g v
enue is
eng
ag
ed in
alg
orith
mic
tra
din
g
and w
ithout
undue d
ela
y,
com
munic
ate
the info
rmation r
efe
rred
to
in
the
second
subpara
gra
ph
that
it
receiv
es
from
th
e
investm
ent firm
that engag
es in a
lgorith
mic
tra
din
g.
The in
vestm
ent
firm
shall
arr
ang
e fo
r re
cord
s to
be kept
in
rela
tion t
o t
he m
att
ers
refe
rred t
o i
n t
his
para
gra
ph a
nd s
hall
ensure
that
those r
ecord
s b
e s
uff
icie
nt
to e
nable
its
com
pete
nt
auth
ority
to m
onitor
com
plia
nce w
ith t
he r
eq
uirem
ents
of
this
D
irective.
A
n in
vestm
ent firm
that eng
ag
es in
a h
igh-f
requency a
lgorith
mic
tr
adin
g t
echniq
ue s
hall
sto
re in a
n a
ppro
ved f
orm
accura
te a
nd
tim
e
seq
uenced
record
s
of
all
its
pla
ced
ord
ers
, in
clu
din
g
cancella
tions
of
ord
ers
, execute
d
ord
ers
and
quota
tions
on
tradin
g v
enues a
nd s
hall
make them
availa
ble
to the c
om
pete
nt
auth
ority
upon r
eq
uest.
Art
icle
17(3
) (a
s a
pplie
d
by A
rtic
le
1.5
) of
MiF
ID
II
An in
vestm
ent firm
that eng
ag
es in
alg
orith
mic
tra
din
g to p
urs
ue
a m
ark
et m
akin
g s
trate
gy s
hall,
takin
g into
account th
e liq
uid
ity,
scale
and n
atu
re o
f th
e s
pecific
mark
et
and t
he c
hara
cte
ristics
of
the instr
um
ent tr
aded:
(a)
carr
y o
ut th
is m
ark
et m
akin
g c
ontinuously
during
a s
pecifie
d
pro
port
ion o
f th
e tra
din
g v
enue’s
tra
din
g h
ours
, except under
exceptional
circum
sta
nces,
with
the
result
of
pro
vid
ing
liq
uid
ity o
n a
reg
ula
r and p
redic
table
basis
to t
he t
radin
g
venue;
Reg
ula
tion 3
0
H
MT
13
AR
TIC
LE
T
EX
T
TR
AN
SP
OS
ITIO
N I
N F
INA
NC
IAL
S
ER
VIC
ES
AN
D M
AR
KE
TS
AC
T
2000 (
MA
RK
ET
S I
N F
INA
NC
IAL
IN
ST
RU
ME
NT
S)
RE
GU
LA
TIO
NS
2017
RE
SP
ON
SIB
LE
B
OD
Y
(b)
ente
r in
to
a
bin
din
g
writt
en
ag
reem
ent
with th
e
tradin
g
venue w
hic
h shall
at
least
specify th
e oblig
ations of
the
investm
ent firm
in a
ccord
ance w
ith p
oin
t (a
); a
nd
(c)
have in p
lace e
ffective s
yste
ms a
nd c
ontr
ols
to e
nsure
that
it f
ulfils
its
oblig
ations u
nder
the a
gre
em
ent
refe
rred t
o i
n
poin
t (b
) at
all
tim
es.
Art
icle
17(4
) (a
s a
pplie
d
by A
rtic
le
1.5
) of
MiF
ID
II
For
the p
urp
oses o
f th
is A
rtic
le a
nd o
f A
rtic
le 4
8 o
f th
is D
irective,
an i
nvestm
ent
firm
that
eng
ag
es i
n a
lgorith
mic
tra
din
g s
hall
be
consid
ere
d to b
e p
urs
uin
g a
mark
et m
akin
g s
trate
gy w
hen, as a
m
em
ber
or
part
icip
ant
of
one
or
more
tr
adin
g
venues,
its
str
ate
gy,
when d
ealin
g o
n o
wn a
ccount,
involv
es p
osting
firm
, sim
ultaneous
two-w
ay
quote
s
of
com
para
ble
siz
e
and
at
com
petitive p
rices r
ela
ting
to o
ne o
r m
ore
fin
ancia
l in
str
um
ents
on a
sin
gle
tra
din
g v
enue o
r acro
ss d
iffe
rent tr
adin
g v
enues, w
ith
th
e r
esult o
f pro
vid
ing l
iquid
ity o
n a
reg
ula
r and f
req
uent
basis
to
the o
vera
ll m
ark
et.
Reg
ula
tion 3
0
Para
gra
ph 1
(6)
of
Schedule
3
insert
ing p
ara
gra
ph 3
A o
f th
e R
RR
(S
)
HM
T
Art
icle
17(5
) (a
s a
pplie
d
by A
rtic
le
1.5
) of
MiF
ID
II
An i
nvestm
ent
firm
that
pro
vid
es d
irect
ele
ctr
onic
access t
o a
tr
adin
g v
enue s
hall
have in
pla
ce e
ffective s
yste
ms a
nd c
ontr
ols
w
hic
h e
nsure
a p
roper
assessm
ent
and r
evie
w o
f th
e s
uitabili
ty
of
clie
nts
usin
g t
he s
erv
ice,
that
clie
nts
usin
g t
he s
erv
ice a
re
pre
vente
d fro
m e
xceedin
g a
ppro
priate
pre
-set tr
adin
g a
nd c
redit
thre
shold
s,
that
tradin
g b
y c
lients
usin
g t
he s
erv
ice i
s p
roperly
monitore
d a
nd that appro
priate
ris
k c
ontr
ols
pre
vent tr
adin
g that
may c
reate
ris
ks to the in
vestm
ent firm
itself o
r th
at could
cre
ate
or
contr
ibute
to
a dis
ord
erly m
ark
et
or
could
be contr
ary
to
R
eg
ula
tion (
EU
) N
o 5
96/2
014 o
r th
e r
ule
s o
f th
e t
radin
g v
enue.
Direct
ele
ctr
onic
access w
ithout
such c
ontr
ols
is p
rohib
ited.
An i
nvestm
ent
firm
that
pro
vid
es d
irect
ele
ctr
onic
access s
hall
be responsib
le for ensuring that clie
nts
usin
g that s
erv
ice c
om
ply
w
ith th
e re
quirem
ents
of
this
D
irective and th
e ru
les of
the
Reg
ula
tion 3
2,
33 a
nd 4
6
H
MT
14
AR
TIC
LE
T
EX
T
TR
AN
SP
OS
ITIO
N I
N F
INA
NC
IAL
S
ER
VIC
ES
AN
D M
AR
KE
TS
AC
T
2000 (
MA
RK
ET
S I
N F
INA
NC
IAL
IN
ST
RU
ME
NT
S)
RE
GU
LA
TIO
NS
2017
RE
SP
ON
SIB
LE
B
OD
Y
tradin
g
venue.
The
investm
ent
firm
shall
monitor
the
transactions i
n o
rder
to i
dentify
infr
ing
em
ents
of
those r
ule
s,
dis
ord
erly tra
din
g c
onditio
ns o
r conduct th
at m
ay in
volv
e m
ark
et
abuse a
nd that is
to b
e r
eport
ed to the c
om
pete
nt auth
ority
. T
he
investm
ent
firm
shall
ensure
th
at
there
is
a bin
din
g w
ritt
en
agre
em
ent betw
een the in
vestm
ent firm
and the c
lient re
gard
ing
th
e e
ssential rig
hts
and o
blig
ations a
risin
g f
rom
the p
rovis
ion o
f th
e s
erv
ice a
nd t
hat
under
the a
gre
em
ent
the i
nvestm
ent
firm
re
tain
s r
esponsib
ility
under
this
Directive.
An i
nvestm
ent
firm
that
pro
vid
es d
irect
ele
ctr
onic
access t
o a
tr
adin
g v
enue s
hall
notify
the c
om
pete
nt
auth
orities o
f its h
om
e
Mem
ber
Sta
te a
nd o
f th
e tra
din
g v
enue a
t w
hic
h the investm
ent
firm
pro
vid
es d
irect
ele
ctr
onic
access a
ccord
ing
ly.
Art
icle
17(6
) (a
s a
pplie
d
by A
rtic
le
1.5
) of
MiF
ID
II
An i
nvestm
ent
firm
that
acts
as a
genera
l cle
aring m
em
ber
for
oth
er
pers
ons s
hall
have in
pla
ce e
ffective s
yste
ms a
nd c
ontr
ols
to
ensure
cle
aring s
erv
ices a
re o
nly
applie
d t
o p
ers
ons w
ho a
re
suitable
and
meet
cle
ar
crite
ria
and
that
appro
priate
re
quirem
ents
are
im
posed o
n t
hose p
ers
ons t
o r
educe r
isks t
o
the in
vestm
ent firm
and to the m
ark
et.
The in
vestm
ent firm
shall
ensure
that
there
is a
bin
din
g w
ritt
en a
gre
em
ent
betw
een t
he
investm
ent
firm
and t
he p
ers
on r
eg
ard
ing
the e
ssential
rig
hts
and o
blig
ations a
risin
g fro
m the p
rovis
ion o
f th
at serv
ice.
Reg
ula
tion 3
4
HM
T
Art
icle
18(1
) (p
art
), (
2),
(3
), (
4),
(7)
and (
8)
of
MiF
ID I
I
Tra
din
g p
rocess a
nd f
inalis
ation o
f tr
ansactions in a
n M
TF
and
an O
TF
1. M
em
ber
Sta
tes s
hall
req
uire that in
vestm
ent firm
s a
nd m
ark
et
opera
tors
opera
ting a
n M
TF
or
an O
TF
, in
additio
n t
o m
eeting
the o
rganis
ational r
eq
uirem
ents
laid
dow
n in
Art
icle
16, esta
blis
h
transpare
nt ru
les a
nd p
rocedure
s for fa
ir a
nd o
rderly tra
din
g a
nd
esta
blis
h o
bje
ctive c
rite
ria f
or
the e
ffic
ient execution o
f ord
ers
.
Para
gra
ph 1
(7)
of
Schedule
3
am
endin
g p
ara
gra
ph 4
of th
e R
RR
(S
)
Para
gra
ph 1
(10)
and (
11)
of
Schedule
3 a
mendin
g p
ara
gra
phs
7A
and 7
B o
f th
e R
RR
(S
)
HM
T
15
AR
TIC
LE
T
EX
T
TR
AN
SP
OS
ITIO
N I
N F
INA
NC
IAL
S
ER
VIC
ES
AN
D M
AR
KE
TS
AC
T
2000 (
MA
RK
ET
S I
N F
INA
NC
IAL
IN
ST
RU
ME
NT
S)
RE
GU
LA
TIO
NS
2017
RE
SP
ON
SIB
LE
B
OD
Y
They s
hall
have a
rrang
em
ents
for
the s
ound m
anag
em
ent of th
e
technic
al
opera
tions o
f th
e f
acili
ty,
inclu
din
g t
he e
sta
blis
hm
ent
of
eff
ective conting
ency arr
ang
em
ents
to
cope w
ith risks of
syste
ms d
isru
ption.
2. M
em
ber
Sta
tes s
hall
req
uire that in
vestm
ent firm
s a
nd m
ark
et
opera
tors
opera
ting a
n M
TF
or
an O
TF
esta
blis
h t
ranspare
nt
rule
s
reg
ard
ing
the
crite
ria
for
dete
rmin
ing
th
e
financia
l in
str
um
ents
that can b
e tra
ded u
nder
its s
yste
ms.
Mem
ber
Sta
tes s
hall
require t
hat, w
here
applic
able
, in
vestm
ent
firm
s
and
mark
et
opera
tors
opera
ting
an
MT
F
or
an
OT
F
pro
vid
e, or
are
satisfied that th
ere
is a
ccess to, suff
icie
nt public
ly
availa
ble
info
rmation t
o e
nable
its
users
to f
orm
an i
nvestm
ent
judg
em
ent, takin
g into
account
both
the n
atu
re o
f th
e u
sers
and
the types o
f in
str
um
ents
tra
ded.
3. M
em
ber
Sta
tes s
hall
req
uire that in
vestm
ent firm
s a
nd m
ark
et
opera
tors
opera
ting
an M
TF
or
an O
TF
esta
blis
h,
publis
h a
nd
main
tain
and
imple
ment
transpare
nt
and
non-d
iscrim
inato
ry
rule
s, based o
n o
bje
ctive c
rite
ria, g
overn
ing
access to it
s facili
ty.
4. M
em
ber
Sta
tes s
hall
req
uire that in
vestm
ent firm
s a
nd m
ark
et
opera
tors
opera
ting a
n M
TF
or
an O
TF
have a
rrang
em
ents
to
identify
cle
arly a
nd m
anag
e the p
ote
ntial a
dvers
e c
onseq
uences
for
the o
pera
tion o
f th
e M
TF
or
OT
F,
or
for
the m
em
bers
or
part
icip
ants
and u
sers
, of
any c
onflic
t of
inte
rest
betw
een t
he
inte
rest of th
e M
TF
, th
e O
TF
, th
eir o
wners
or
the in
vestm
ent firm
or
mark
et
opera
tor
opera
ting t
he M
TF
or
OT
F a
nd t
he s
ound
functionin
g o
f th
e M
TF
or
OT
F.
Para
gra
ph 1
(16)
of
Schedule
3
am
endin
g p
ara
gra
ph 9
A o
f th
e
RR
R (
S)
P
ara
gra
ph 1
(17)
of
Schedule
3
insert
ing p
ara
gra
phs 9
D a
nd 9
G o
f th
e R
RR
(S
)
16
AR
TIC
LE
T
EX
T
TR
AN
SP
OS
ITIO
N I
N F
INA
NC
IAL
S
ER
VIC
ES
AN
D M
AR
KE
TS
AC
T
2000 (
MA
RK
ET
S I
N F
INA
NC
IAL
IN
ST
RU
ME
NT
S)
RE
GU
LA
TIO
NS
2017
RE
SP
ON
SIB
LE
B
OD
Y
……
……
…
7.
Mem
ber
Sta
tes s
hall
req
uire t
hat
MT
Fs a
nd O
TF
s h
ave a
t le
ast th
ree m
ate
rially
active m
em
bers
or
users
, each h
avin
g the
opport
unity to
in
tera
ct
with all
the oth
ers
in
re
spect
to price
form
ation.
8.
Where
a tr
ansfe
rable
security
th
at
has been adm
itte
d to
tr
adin
g o
n a
reg
ula
ted m
ark
et
is a
lso t
raded o
n a
n M
TF
or
an
OT
F w
ithout
the c
onsent
of
the i
ssuer,
the i
ssuer
shall
not
be
subje
ct
to a
ny o
blig
ation r
ela
ting t
o i
nitia
l, o
ng
oin
g o
r ad h
oc
financia
l dis
clo
sure
with r
eg
ard
to that M
TF
or
an O
TF
.
Art
icle
18(1
0)
of
MiF
ID I
I M
em
ber
Sta
tes s
hall
require t
hat
investm
ent
firm
s a
nd m
ark
et
opera
tors
opera
ting
an M
TF
or
an O
TF
pro
vid
e t
he c
om
pete
nt
auth
ority
with a
deta
iled d
escription o
f th
e functionin
g o
f th
e M
TF
or
OT
F, in
clu
din
g, w
ithout
pre
judic
e t
o A
rtic
le 2
0(1
), (
4)
and (
5),
any lin
ks t
o o
r part
icip
ation b
y a
reg
ula
ted m
ark
et, a
n M
TF
, an
OT
F o
r a s
yste
matic in
tern
alis
er
ow
ned b
y the s
am
e in
vestm
ent
firm
or
mark
et opera
tor,
and a
list of th
eir m
em
bers
, part
icip
ants
and/o
r users
. C
om
pete
nt auth
orities s
hall
make that in
form
ation
availa
ble
to
E
SM
A
on
req
uest.
Every
auth
orisation
to
an
investm
ent firm
or
mark
et opera
tor
as a
n M
TF
and a
n O
TF
shall
be n
otified to E
SM
A.
[f
ull
text not re
pro
duced h
ere
]
Reg
ula
tion 4
2 (
in r
ela
tion t
o t
he
underlin
ed t
ext)
P
ara
gra
ph 1
(16)
of
Schedule
3
am
endin
g p
ara
gra
ph 9
A o
f th
e
RR
R (
S)
HM
T
Art
icle
19(1
) and (
5)
of
MiF
ID I
I
Specific
req
uirem
ents
for
MT
Fs
1. M
em
ber
Sta
tes s
hall
req
uire that in
vestm
ent firm
s a
nd m
ark
et
opera
tors
opera
ting
an
MT
F,
in
additio
n
to
meeting
the
Para
gra
ph 1
(17)
of
Schedule
3
insert
ing p
ara
gra
phs 9
B a
nd 9
C o
f th
e R
RR
(S
)
HM
T
17
AR
TIC
LE
T
EX
T
TR
AN
SP
OS
ITIO
N I
N F
INA
NC
IAL
S
ER
VIC
ES
AN
D M
AR
KE
TS
AC
T
2000 (
MA
RK
ET
S I
N F
INA
NC
IAL
IN
ST
RU
ME
NT
S)
RE
GU
LA
TIO
NS
2017
RE
SP
ON
SIB
LE
B
OD
Y
req
uirem
ents
laid
dow
n in
Art
icle
s 1
6 a
nd 1
8, shall
esta
blis
h a
nd
imple
ment non-
dis
cre
tionary
rule
s for
the e
xecution o
f ord
ers
in
the s
yste
m.
,,,,,,,,,,,,,,
5.
Mem
ber
Sta
tes s
hall
not
allo
w i
nvestm
ent
firm
s o
r m
ark
et
opera
tors
opera
ting
an M
TF
to e
xecute
clie
nt
ord
ers
ag
ain
st
pro
prieta
ry c
apital, o
r to
eng
ag
e in m
atc
hed p
rincip
al tr
adin
g.
Art
icle
20(1
) to
(5),
(7)
(part
) and (
8)
of
MiF
ID I
I
Specific
req
uirem
ents
for
OT
Fs
1.
Mem
ber
Sta
tes s
hall
req
uire t
hat
an i
nvestm
ent
firm
and a
m
ark
et
opera
tor
opera
ting a
n O
TF
esta
blis
hes a
rrang
em
ents
pre
venting t
he e
xecution o
f clie
nt
ord
ers
in a
n O
TF
ag
ain
st
the
pro
prieta
ry capital
of
the in
vestm
ent
firm
or
mark
et
opera
tor
opera
ting
the O
TF
or
from
any e
ntity
that
is p
art
of
the s
am
e
gro
up o
r le
gal p
ers
on a
s the in
vestm
ent firm
or
mark
et opera
tor.
2.
Mem
ber
Sta
tes s
hall
perm
it a
n i
nvestm
ent
firm
or
mark
et
opera
tor
opera
ting
an O
TF
to
eng
ag
e
in m
atc
hed
princip
al
tradin
g
in
bonds,
str
uctu
red
finance
pro
ducts
, em
issio
n
allo
wances a
nd c
ert
ain
derivatives o
nly
where
the c
lient
has
consente
d to t
he p
rocess.
An i
nvestm
ent
firm
or
mark
et
opera
tor
opera
ting a
n O
TF
shall
not
use m
atc
hed p
rincip
al tr
adin
g t
o e
xecute
clie
nt
ord
ers
in a
n
OT
F i
n d
erivatives p
ert
ain
ing t
o a
cla
ss o
f derivatives t
hat
has
been d
ecla
red s
ubje
ct
to t
he c
learing
oblig
ation i
n a
ccord
ance
with A
rtic
le 5
of
Reg
ula
tion (
EU
) N
o 6
48/2
012.
Para
gra
ph 1
(17)
of
Schedule
3
insert
ing p
ara
gra
phs 9
F a
nd 9
H o
f th
e R
RR
(S
)
HM
T
18
AR
TIC
LE
T
EX
T
TR
AN
SP
OS
ITIO
N I
N F
INA
NC
IAL
S
ER
VIC
ES
AN
D M
AR
KE
TS
AC
T
2000 (
MA
RK
ET
S I
N F
INA
NC
IAL
IN
ST
RU
ME
NT
S)
RE
GU
LA
TIO
NS
2017
RE
SP
ON
SIB
LE
B
OD
Y
An i
nvestm
ent
firm
or
mark
et
opera
tor
opera
ting a
n O
TF
shall
esta
blis
h a
rrang
em
ents
ensuring
com
plia
nce w
ith t
he d
efinitio
n
of
matc
hed p
rincip
al tr
adin
g in p
oin
t (3
8)
of
Art
icle
4(1
).
3.
Mem
ber
Sta
tes s
hall
perm
it a
n i
nvestm
ent
firm
or
mark
et
opera
tor
opera
ting a
n O
TF
to e
ng
ag
e in
dealin
g o
n o
wn a
ccount
oth
er
than
matc
hed
princip
al
tradin
g
only
w
ith
reg
ard
to
sovere
ign d
ebt in
str
um
ents
for w
hic
h there
is n
ot a li
quid
mark
et.
4.
Mem
ber
Sta
tes s
hall
not
allo
w t
he o
pera
tion o
f an O
TF
and
of
a s
yste
matic i
nte
rnalis
er
to t
ake p
lace w
ithin
the s
am
e l
eg
al
entity
. A
n O
TF
shall
not connect w
ith a
syste
matic in
tern
alis
er
in
a w
ay w
hic
h e
nable
s o
rders
in a
n O
TF
and o
rders
or
quote
s in
a s
yste
matic i
nte
rnalis
er
to i
nte
ract. A
n O
TF
shall
not
connect
with a
noth
er
OT
F i
n a
wa
y w
hic
h e
nable
s o
rders
in d
iffe
rent
OT
Fs to inte
ract.
5.
Mem
ber
Sta
tes shall
not
pre
vent
an in
vestm
ent
firm
or
a
mark
et
opera
tor
opera
ting
an
OT
F
from
eng
ag
ing
anoth
er
investm
ent
firm
to c
arr
y o
ut
mark
et
makin
g o
n t
hat
OT
F o
n a
n
independent
basis
.
For
the p
urp
oses o
f th
is A
rtic
le,
an investm
ent
firm
shall
not
be
deem
ed t
o b
e c
arr
yin
g o
ut
mark
et
makin
g o
n a
n O
TF
on a
n
independent basis
if it
has c
lose li
nks w
ith the in
vestm
ent firm
or
mark
et
opera
tor
opera
ting t
he O
TF
.
……
……
……
……
….
19
AR
TIC
LE
T
EX
T
TR
AN
SP
OS
ITIO
N I
N F
INA
NC
IAL
S
ER
VIC
ES
AN
D M
AR
KE
TS
AC
T
2000 (
MA
RK
ET
S I
N F
INA
NC
IAL
IN
ST
RU
ME
NT
S)
RE
GU
LA
TIO
NS
2017
RE
SP
ON
SIB
LE
B
OD
Y
7.
The
com
pete
nt
auth
ority
m
ay
req
uire,
either
when
an
investm
ent firm
or
mark
et opera
tor
req
uests
to b
e a
uth
orised for
the
opera
tion
of
an
OT
F
or
on
ad-h
oc
basis
, a
deta
iled
expla
nation w
hy t
he s
yste
m d
oes n
ot
corr
espond to a
nd c
annot
opera
te a
s a
reg
ula
ted m
ark
et, M
TF
, or
syste
matic inte
rnalis
er,
a d
eta
iled d
escription a
s t
o h
ow
dis
cre
tion w
ill b
e e
xerc
ised,
in
part
icula
r w
hen a
n o
rder
to the O
TF
may b
e r
etr
acte
d a
nd w
hen
and h
ow
tw
o o
r m
ore
clie
nt
ord
ers
will
be m
atc
hed w
ithin
the
OT
F.
In a
dditio
n,
the i
nvestm
ent
firm
or
mark
et
opera
tor
of
an
OT
F
shall
pro
vid
e
the
com
pete
nt
auth
ority
w
ith
info
rmation
expla
inin
g i
ts u
se o
f m
atc
hed p
rincip
al
tradin
g.
The c
om
pete
nt
auth
ority
shall
monitor
an in
vestm
ent firm
’s o
r m
ark
et opera
tor’s
eng
ag
em
ent
in
matc
hed
princip
al
tradin
g
to
ensure
th
at
it
continues t
o f
all
within
the d
efinitio
n o
f such t
radin
g a
nd t
hat
its
eng
ag
em
ent
in m
atc
hed p
rincip
al
tradin
g d
oes n
ot
giv
e r
ise t
o
conflic
ts
of
inte
rest
betw
een
the
investm
ent
firm
or
mark
et
opera
tor
and its
clie
nts
.
8.
Mem
ber
Sta
tes s
hall
ensure
that
Art
icle
s 2
4,
25,
27 a
nd 2
8
are
applie
d t
o the tra
nsactions c
onclu
ded o
n a
n O
TF
.
Art
icle
27(3
) of
MiF
ID I
I
Mem
ber
Sta
tes
shall
req
uire
that
for
financia
l in
str
um
ents
subje
ct to
the tra
din
g o
blig
ation in
Art
icle
s 2
3 a
nd 2
8 R
eg
ula
tion
(EU
) N
o
600/2
014
each
tradin
g
venue
and
syste
matic
inte
rnalis
er
and f
or
oth
er
financia
l in
str
um
ents
each e
xecution
venue m
akes a
vaila
ble
to t
he p
ublic
, w
ithout
any c
harg
es,
data
re
lating t
o the q
ualit
y o
f execution o
f tr
ansactions o
n that venue
on a
t le
ast
an a
nnual
basis
and t
hat
follo
win
g e
xecution o
f a
transaction o
n b
ehalf o
f a c
lient
the investm
ent firm
shall
info
rm
the c
lient
where
the o
rder
was e
xecute
d.
Periodic
report
s s
hall
Para
gra
ph 1
(9)
of
Schedule
3
insert
ing p
ara
gra
ph 4
C o
f th
e R
RR
(S
)
HM
T
20
AR
TIC
LE
T
EX
T
TR
AN
SP
OS
ITIO
N I
N F
INA
NC
IAL
S
ER
VIC
ES
AN
D M
AR
KE
TS
AC
T
2000 (
MA
RK
ET
S I
N F
INA
NC
IAL
IN
ST
RU
ME
NT
S)
RE
GU
LA
TIO
NS
2017
RE
SP
ON
SIB
LE
B
OD
Y
inclu
de
deta
ils
about
price,
costs
, speed
and
likelih
ood
of
execution f
or
indiv
idua
l financia
l in
str
um
ents
.
Art
icle
29(4
) of
MiF
ID I
I M
em
ber
Sta
tes s
hall
req
uire t
hat
investm
ent
firm
s a
ppoin
ting
tied ag
ents
ta
ke adeq
uate
m
easure
s in
ord
er
to avoid
any
neg
ative im
pact
that
the a
ctivitie
s o
f th
e t
ied a
gent
not
covere
d
by the s
cope o
f th
is D
irective c
ould
have o
n the a
ctivitie
s c
arr
ied
out
by t
he t
ied a
gent on b
ehalf o
f th
e investm
ent firm
.
Para
gra
ph 2
of
Schedule
2
am
endin
g s
ection 3
9 F
SM
A
HM
T
Art
icle
29(5
) of
MiF
ID I
I M
em
ber
Sta
tes s
hall
require t
hat
investm
ent
firm
s a
ppoin
t only
tied
ag
ents
ente
red
in
the
public
re
gis
ters
re
ferr
ed
to
in
para
gra
ph 3
.
Para
gra
ph 3
of
Schedule
2
am
endin
g s
ection 3
9A
FS
MA
H
MT
Art
icle
31(1
) and (
2)
(part
) of
MiF
ID I
I
Mon
itoring
of
com
plia
nce w
ith t
he r
ule
s o
f th
e M
TF
or
the O
TF
and w
ith o
ther
leg
al oblig
ations
1. M
em
ber
Sta
tes s
hall
req
uire that in
vestm
ent firm
s a
nd m
ark
et
opera
tors
opera
ting
an M
TF
or
OT
F esta
blis
h and m
ain
tain
eff
ective a
rrang
em
ents
and p
rocedure
s,
rele
vant
to t
he M
TF
or
OT
F,
for
the
reg
ula
r m
onitoring
of
the
com
plia
nce
by
its
mem
bers
or
part
icip
ants
or
users
with it
s r
ule
s. In
vestm
ent firm
s
and m
ark
et opera
tors
opera
ting
an M
TF
or
an O
TF
shall
monitor
the ord
ers
sent, in
clu
din
g cancella
tions and th
e tr
ansactions
undert
aken b
y their m
em
bers
or part
icip
ants
or users
under th
eir
syste
ms,
in
ord
er
to
identify
in
frin
gem
ents
of
those
rule
s,
dis
ord
erly
tradin
g
conditio
ns,
conduct
that
may
indic
ate
behavio
ur
that is
pro
hib
ited u
nder
Reg
ula
tion (
EU
) N
o 5
96/2
014
or
syste
m d
isru
ptions i
n r
ela
tion t
o a
fin
ancia
l in
str
um
ent
and
shall
deplo
y
the
resourc
e
necessary
to
ensure
th
at
such
monitoring is e
ffective.
2.
Mem
ber
Sta
tes s
hall
req
uire i
nvestm
ent
firm
s a
nd m
ark
et
opera
tors
opera
ting a
n M
TF
or
an O
TF
to info
rm its
com
pete
nt
Para
gra
ph 1
(6)
of
Schedule
3
am
endin
g p
ara
gra
ph 3
of th
e R
RR
(S
)
Para
gra
ph 1
(7)
of
Schedule
3
am
endin
g p
ara
gra
ph 4
of th
e R
RR
(S
)
HM
T
21
AR
TIC
LE
T
EX
T
TR
AN
SP
OS
ITIO
N I
N F
INA
NC
IAL
S
ER
VIC
ES
AN
D M
AR
KE
TS
AC
T
2000 (
MA
RK
ET
S I
N F
INA
NC
IAL
IN
ST
RU
ME
NT
S)
RE
GU
LA
TIO
NS
2017
RE
SP
ON
SIB
LE
B
OD
Y
auth
ority
im
media
tely
of
sig
nific
ant
infr
ing
em
ents
of
its r
ule
s o
r dis
ord
erly
tradin
g
conditio
ns
or
conduct
that
may
indic
ate
behavio
ur
that is
pro
hib
ited u
nder
Reg
ula
tion (
EU
) N
o 5
96/2
014
or
syste
m d
isru
ptions in r
ela
tion t
o a
fin
ancia
l in
str
um
ent.
Art
icle
32(1
) of
MiF
ID I
I W
ithout
pre
judic
e t
o t
he r
ight
of
the c
om
pete
nt
auth
ority
under
Art
icle
69(2
) to
dem
and s
uspensio
n o
r re
moval
of
a f
inancia
l in
str
um
ent fr
om
tra
din
g, an in
vestm
ent firm
or
a m
ark
et opera
tor
opera
ting
an M
TF
or
an O
TF
may s
uspend o
r re
move f
rom
tr
adin
g a
fin
ancia
l in
str
um
ent w
hic
h n
o long
er
com
plie
s w
ith t
he
rule
s o
f th
e M
TF
or
an O
TF
unle
ss s
uch s
uspensio
n o
r re
moval
wou
ld b
e l
ikely
to c
ause s
ignific
ant
dam
ag
e t
o t
he i
nvesto
rs’
inte
rests
or
the o
rderly f
unctionin
g o
f th
e m
ark
et.
Para
gra
ph 1
(13)
of
Schedule
3
am
endin
g p
ara
gra
ph 7
E o
f th
e
RR
R (
S)
HM
T
Art
icle
32(2
) of
MiF
ID I
I M
em
ber
Sta
tes s
hall
require that an in
vestm
ent firm
or
a m
ark
et
opera
tor
opera
ting a
n M
TF
or
an O
TF
that suspends o
r re
moves
from
tra
din
g a
fin
ancia
l in
str
um
ent
als
o s
uspends o
r re
moves
derivatives r
efe
rred to in
poin
ts (
4)
to (
10)
of S
ection C
of A
nnex
I th
at
rela
te o
r are
refe
renced t
o t
hat financia
l in
str
um
ent
where
necessary
to
support
th
e
obje
ctives
of
the
suspensio
n
or
rem
oval
of
the u
nderlyin
g f
inancia
l in
str
um
ent.
The i
nvestm
ent
firm
or
mark
et opera
tor
opera
ting
an M
TF
or
an O
TF
shall
make
public
its
decis
ion o
n t
he s
uspensio
n o
r re
moval of
the f
inancia
l in
str
um
ent
and o
f any r
ela
ted d
erivative a
nd c
om
munic
ate
the
rele
vant
decis
ions t
o its
com
pete
nt
auth
ority
.
The c
om
pete
nt
auth
ority
, in
whose j
urisdic
tion t
he s
uspensio
n
or re
moval o
rig
inate
d, shall
req
uire that re
gula
ted m
ark
ets
, oth
er
MT
Fs, oth
er
OT
Fs a
nd s
yste
matic in
tern
alis
ers
, w
hic
h fall
under
its
jurisdic
tion
and
trade
the
sam
e
financia
l in
str
um
ent
or
derivatives r
efe
rred to in
poin
ts (
4)
to (
10)
of S
ection C
of A
nnex
I to
this
Directive t
hat
rela
te o
r are
refe
renced t
o t
hat
financia
l
Para
gra
ph 3
9 to 4
2 o
f S
chedule
2am
endin
g P
art
18A
FS
MA
P
ara
gra
ph 1
(13)
of
Schedule
3
am
endin
g p
ara
gra
ph 7
E o
f th
e
RR
R (
S)
HM
T
22
AR
TIC
LE
T
EX
T
TR
AN
SP
OS
ITIO
N I
N F
INA
NC
IAL
S
ER
VIC
ES
AN
D M
AR
KE
TS
AC
T
2000 (
MA
RK
ET
S I
N F
INA
NC
IAL
IN
ST
RU
ME
NT
S)
RE
GU
LA
TIO
NS
2017
RE
SP
ON
SIB
LE
B
OD
Y
instr
um
ent, a
lso s
uspend o
r re
move t
hat
financia
l in
str
um
ent
or
derivatives fro
m tra
din
g, w
here
the s
uspensio
n o
r re
moval i
s d
ue
to
suspecte
d
mark
et
abuse,
a
take-
over
bid
or
the
non-
dis
clo
sure
of
insid
e in
form
ation about
the is
suer
or
financia
l in
str
um
ent
infr
ing
ing
Art
icle
s 7
and 1
7 o
f R
eg
ula
tion (
EU
) N
o
596/2
014
except
where
such
suspensio
n
or
rem
oval
could
cause
sig
nific
ant
dam
ag
e
to
the
investo
rs’
inte
rests
or
the
ord
erly f
unctionin
g o
f th
e m
ark
et.
The com
pete
nt
auth
ority
shall
imm
edia
tely
m
ake public
and
com
munic
ate
to E
SM
A and t
he c
om
pete
nt
auth
orities o
f th
e
oth
er
Mem
ber
Sta
tes s
uch a
decis
ion.
The n
otified c
om
pete
nt
auth
orities o
f th
e o
ther
Mem
ber
Sta
tes
shall
req
uire t
hat
reg
ula
ted m
ark
ets
, oth
er
MT
Fs,
oth
er
OT
Fs
and s
yste
matic i
nte
rnalis
ers
, w
hic
h f
all
under
their j
urisdic
tion
and t
rade t
he s
am
e f
inancia
l in
str
um
ent
or
derivatives r
efe
rred
to in p
oin
ts (
4)
to (
10)
of
Section C
of
Annex I
that
rela
te o
r are
re
fere
nced t
o t
hat financia
l in
str
um
ent, a
lso s
uspend o
r re
move
that
financia
l in
str
um
ent
or
derivatives f
rom
tra
din
g,
where
the
suspensio
n o
r re
moval
is d
ue t
o s
uspecte
d m
ark
et
abuse,
a
take-o
ver
bid
or
the n
on-d
isclo
sure
of
insid
e i
nfo
rmation a
bout
the issuer
or
financia
l in
str
um
ent
infr
ing
ing
Art
icle
s 7
and 1
7 o
f R
eg
ula
tion (
EU
) N
o 5
96/2
014 e
xcept w
here
such s
uspensio
n o
r re
moval
could
cause
sig
nific
ant
dam
ag
e
to
the
investo
rs’
inte
rests
or
the o
rderly f
unctionin
g o
f th
e m
ark
et.
Each
notified
com
pete
nt
auth
ority
shall
com
munic
ate
its
decis
ion to E
SM
A a
nd o
ther
com
pete
nt auth
orities, in
clu
din
g a
n
expla
nation if
the d
ecis
ion w
as n
ot
to s
uspend o
r re
move f
rom
tr
adin
g th
e financia
l in
str
um
ent
or
derivatives re
ferr
ed to
in
23
AR
TIC
LE
T
EX
T
TR
AN
SP
OS
ITIO
N I
N F
INA
NC
IAL
S
ER
VIC
ES
AN
D M
AR
KE
TS
AC
T
2000 (
MA
RK
ET
S I
N F
INA
NC
IAL
IN
ST
RU
ME
NT
S)
RE
GU
LA
TIO
NS
2017
RE
SP
ON
SIB
LE
B
OD
Y
poin
ts (
4)
to (
10)
of
Section C
of
Annex I
that
rela
te o
r are
re
fere
nced to that financia
l in
str
um
ent.
This
para
gra
ph a
lso a
pplie
s w
hen t
he s
uspensio
n f
rom
tra
din
g
of a fin
ancia
l instr
um
ent or
derivatives r
efe
rred to in
poin
ts (
4)
to
(10)
of
Section C
of
Annex I
that re
late
or
are
refe
renced to that
financia
l in
str
um
ent is
lifte
d.
The n
otification p
rocedure
refe
rred to in
this
para
gra
ph s
hall
als
o
apply
in the c
ase w
here
the d
ecis
ion to s
uspend o
r re
move fro
m
tradin
g a
fin
ancia
l in
str
um
ent
or
derivatives r
efe
rred t
o in p
oin
ts
(4)
to (
10)
of
Section C
of
Annex I
that
rela
te o
r are
refe
renced
to t
hat
financia
l in
str
um
ent
is t
aken b
y t
he c
om
pete
nt
auth
ority
purs
uant to
poin
ts (
m)
and (
n)
of
Art
icle
69(2
).
Art
icle
33(1
) (p
art
) of
MiF
ID I
I
Mem
ber
Sta
tes s
hall
pro
vid
e t
hat
the o
pera
tor
of
a M
TF
may
apply
to
its
hom
e
com
pete
nt
auth
ority
to
have
the
MT
F
reg
iste
red a
s a
n S
ME
gro
wth
mark
et.
Para
gra
ph 1
(17)
of
Schedule
3
insert
ing p
ara
gra
ph 9
E o
f th
e R
RR
(S
)
HM
T
Art
icle
33(6
) of
MiF
ID I
I M
em
bers
Sta
tes s
hall
req
uire that if a
hom
e c
om
pete
nt auth
ority
re
gis
ters
or
dere
gis
ters
an M
TF
as a
n S
ME
gro
wth
mark
et under
this
A
rtic
le it shall
as soon as possib
le notify
E
SM
A of
that
reg
istr
ation o
r dere
gis
tration.
ES
MA
shall
publis
h o
n its
website
a lis
t of
SM
E g
row
th m
ark
ets
and s
hall
keep t
hat
list
up to d
ate
.
Reg
ula
tion 4
2
HM
T
Art
icle
33(7
) (p
art
) of
MiF
ID I
I
Mem
ber
Sta
tes s
hall
require that w
here
a fin
ancia
l instr
um
ent of
an issuer
is a
dm
itte
d to tra
din
g o
n o
ne S
ME
gro
wth
mark
et, the
financia
l instr
um
ent m
ay a
lso b
e tra
ded o
n a
noth
er
SM
E g
row
th
mark
et
only
where
the i
ssuer
has b
een i
nfo
rmed a
nd h
as n
ot
obje
cte
d. In
such a
case h
ow
ever,
the is
suer shall
not be s
ubje
ct
to any oblig
ation re
lating
to
corp
ora
te g
overn
ance or
initia
l,
ong
oin
g or
ad hoc dis
clo
sure
w
ith re
gard
to
th
e la
tter
SM
E
gro
wth
mark
et.
Para
gra
ph 1
(17)
of
Schedule
3
insert
ing p
ara
gra
ph 9
E o
f th
e R
RR
(S
)
HM
T
24
AR
TIC
LE
T
EX
T
TR
AN
SP
OS
ITIO
N I
N F
INA
NC
IAL
S
ER
VIC
ES
AN
D M
AR
KE
TS
AC
T
2000 (
MA
RK
ET
S I
N F
INA
NC
IAL
IN
ST
RU
ME
NT
S)
RE
GU
LA
TIO
NS
2017
RE
SP
ON
SIB
LE
B
OD
Y
Art
icle
45(2
)(a)
of
MiF
ID I
I
Com
pete
nt
auth
orities
may
auth
orise
mem
bers
of
the
manag
em
ent
body
to
hold
one
additio
nal
non-e
xecutive
directo
rship
. C
om
pete
nt auth
orities s
hall
reg
ula
rly in
form
ES
MA
of
such a
uth
orisations.
[only
rele
vant
text re
pro
duced h
ere
]
Reg
ula
tion 4
4(1
), (
2),
and (
3)(
a)
HM
T
Art
icle
44(1
) of
MiF
ID I
I M
em
ber
Sta
tes
shall
reserv
e
auth
orisation
as
a
reg
ula
ted
mark
et to
those s
yste
ms w
hic
h c
om
ply
with t
his
Title
. [f
ull
text not re
pro
duced h
ere
]
Para
gra
ph 3
2 o
f S
chedule
2
am
endin
g s
ection 2
92 F
SM
A (
in
rela
tion t
o o
vers
eas a
pplic
ants
)
HM
T
Art
icle
44(5
)(d)
of
MiF
ID I
I
The c
om
pete
nt
auth
ority
may w
ithdra
w t
he a
uth
orisation issued
to a
reg
ula
ted m
ark
et, w
here
it:
….
(d)
has seriously
and syste
matically
in
frin
ged th
e pro
vis
ions
adopte
d
purs
uant
to
this
D
irective
or
Reg
ula
tion
(EU
) N
o
600/2
014;
Para
gra
ph 6
(4)(
a)
of
Schedule
3
insert
ing p
ara
gra
ph (
6)(
aa)
of
art
icle
4 o
f th
e Q
EP
O?
Art
icle
45(1
),
(2)
(part
), (
3),
(4
), (
5),
(6)
and (
8)
(part
) of
MiF
ID I
I
Req
uirem
ents
for
the m
anag
em
ent body o
f a m
ark
et
opera
tor
1.
Mem
ber
Sta
tes
shall
req
uire
that
all
mem
bers
of
the
manag
em
ent
body o
f any m
ark
et
opera
tor
shall
at
all
tim
es b
e
of
suff
icie
ntly g
ood r
epute
, possess s
uff
icie
nt
know
ledg
e,
skill
s
and e
xperience t
o p
erf
orm
their d
uties. T
he o
vera
ll com
positio
n
of th
e m
anag
em
ent body s
hall
reflect an a
dequate
ly b
road rang
e
of
experience.
2.
Mem
bers
of
the m
anag
em
ent
body s
hall,
in p
art
icula
r, f
ulfil
the follo
win
g r
eq
uirem
ents
:
(a)
All
mem
bers
of th
e m
anag
em
ent body s
hall
com
mit s
uff
icie
nt
tim
e to
perf
orm
th
eir fu
nctions in
th
e m
ark
et
opera
tor.
T
he
num
ber
of directo
rship
s a
mem
ber
of th
e m
anag
em
ent body c
an
hold
, in
any le
gal e
ntity
, at th
e s
am
e tim
e s
hall
take in
to a
ccount
Para
gra
ph 1
(4)
of
Schedule
3
am
endin
g p
ara
gra
ph 2
of
the R
RR
(S
) P
ara
gra
ph 1
(5)
of
Schedule
3
insert
ing p
ara
gra
phs 2
A a
nd 2
B o
f th
e R
RR
(S
)
HM
T
25
AR
TIC
LE
T
EX
T
TR
AN
SP
OS
ITIO
N I
N F
INA
NC
IAL
S
ER
VIC
ES
AN
D M
AR
KE
TS
AC
T
2000 (
MA
RK
ET
S I
N F
INA
NC
IAL
IN
ST
RU
ME
NT
S)
RE
GU
LA
TIO
NS
2017
RE
SP
ON
SIB
LE
B
OD
Y
indiv
idual
circum
sta
nces a
nd t
he n
atu
re,
scale
and c
om
ple
xity
of
the m
ark
et opera
tor’s a
ctivitie
s.
Unle
ss
repre
senting
the
Mem
ber
Sta
te,
mem
bers
of
the
manag
em
ent
body o
f m
ark
et
opera
tors
that
are
sig
nific
ant
in
term
s of
their siz
e,
inte
rnal
org
anis
ation and th
e natu
re,
the
scope a
nd the c
om
ple
xity o
f th
eir a
ctivitie
s s
hall
not at th
e s
am
e
tim
e h
old
positio
ns e
xceedin
g m
ore
than o
ne o
f th
e f
ollo
win
g
com
bin
ations:
(i)
one
executive
directo
rship
w
ith
two
non-e
xecutive
directo
rship
s;
(ii) f
our
non-e
xecutive d
irecto
rship
s.
Executive o
r non-e
xecutive d
irecto
rship
s h
eld
within
the s
am
e
gro
up
or
undert
akin
gs
where
th
e
mark
et
opera
tor
ow
ns
a
qualif
yin
g
hold
ing
shall
be
consid
ere
d
to
be
one
sin
gle
directo
rship
.
Com
pete
nt
auth
orities
may
auth
orise
mem
bers
of
the
manag
em
ent
body
to
hold
one
additio
nal
non-e
xecutive
directo
rship
. C
om
pete
nt auth
orities s
hall
reg
ula
rly in
form
ES
MA
of
such a
uth
orisations.
Directo
rship
s
in
org
anis
ations
whic
h
do
not
purs
ue
pre
dom
inantly c
om
merc
ial obje
ctives s
hall
be e
xem
pt
from
the
limitation
on
the
num
ber
of
directo
rship
s
a
mem
ber
of
a
manag
em
ent
body c
an h
old
.
26
AR
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LE
T
EX
T
TR
AN
SP
OS
ITIO
N I
N F
INA
NC
IAL
S
ER
VIC
ES
AN
D M
AR
KE
TS
AC
T
2000 (
MA
RK
ET
S I
N F
INA
NC
IAL
IN
ST
RU
ME
NT
S)
RE
GU
LA
TIO
NS
2017
RE
SP
ON
SIB
LE
B
OD
Y
(b)
The m
anag
em
ent
body s
hall
possess a
dequate
colle
ctive
know
ledg
e,
skill
s a
nd e
xperience t
o b
e a
ble
to u
nders
tand t
he
mark
et
opera
tor’s a
ctivitie
s,
inclu
din
g t
he m
ain
ris
ks.
(c)
Each
mem
ber
of
the
manag
em
ent
body
shall
act
with
honesty
, in
teg
rity
and
independence
of
min
d
to
eff
ectively
assess a
nd c
halle
ng
e t
he d
ecis
ions o
f th
e s
enio
r m
anag
em
ent
where
necessary
and
to
eff
ectively
overs
ee
and
monitor
decis
ion-m
akin
g.
3.
Mark
et
opera
tors
shall
devote
adeq
uate
hum
an a
nd f
inancia
l re
sourc
es
to
the
induction
and
train
ing
of
mem
bers
of
the
manag
em
ent
body.
4.
Mem
ber
Sta
tes s
hall
ensure
that
mark
et
opera
tors
whic
h a
re
sig
nific
ant
in t
erm
s o
f th
eir s
ize,
inte
rnal
org
anis
ation a
nd t
he
natu
re,
scope
and
com
ple
xity
of
their
activitie
s
esta
blis
h
a
nom
ination
com
mitte
e
com
posed
of
mem
bers
of
the
manag
em
ent
body w
ho d
o n
ot
perf
orm
any e
xecutive f
unction
in t
he m
ark
et opera
tor
concern
ed.
The n
om
ination c
om
mitte
e s
hall
carr
y o
ut th
e f
ollo
win
g:
(a) id
entify
and recom
mend, fo
r th
e a
ppro
val o
f th
e m
anag
em
ent
body o
r fo
r appro
val
of
the g
enera
l m
eeting
, candid
ate
s t
o f
ill
manag
em
ent
body
vacancie
s.
In
doin
g
so,
the
nom
ination
com
mitte
e
shall
evalu
ate
th
e
bala
nce
of
know
ledg
e,
skill
s,
div
ers
ity a
nd e
xperience o
f th
e m
anag
em
ent
body.
Furt
her,
the
com
mitte
e
shall
pre
pare
a
description
of
the
role
s
and
capabili
ties f
or
a p
art
icula
r appoin
tment, a
nd a
ssess t
he t
ime
27
AR
TIC
LE
T
EX
T
TR
AN
SP
OS
ITIO
N I
N F
INA
NC
IAL
S
ER
VIC
ES
AN
D M
AR
KE
TS
AC
T
2000 (
MA
RK
ET
S I
N F
INA
NC
IAL
IN
ST
RU
ME
NT
S)
RE
GU
LA
TIO
NS
2017
RE
SP
ON
SIB
LE
B
OD
Y
com
mitm
ent
expecte
d.
Furt
herm
ore
, th
e n
om
ination c
om
mitte
e
shall
decid
e
on
a
targ
et
for
the
repre
senta
tion
of
the
underr
epre
sente
d g
ender
in the m
anag
em
ent body a
nd p
repare
a p
olic
y o
n h
ow
to in
cre
ase the n
um
ber
of th
e u
nderr
epre
sente
d
gender
in the m
anag
em
ent
body in o
rder
to m
eet th
at ta
rget;
(b)
periodic
ally
, and a
t le
ast annually
, assess the s
tructu
re, siz
e,
com
positio
n a
nd p
erf
orm
ance o
f th
e m
anag
em
ent
body,
and
make r
ecom
mendations to the m
anag
em
ent body w
ith r
eg
ard
to
any c
hang
es;
(c)
periodic
ally
, and a
t le
ast
annually
, assess t
he k
now
ledg
e,
skill
s a
nd e
xperience o
f in
div
idual m
em
bers
of th
e m
anag
em
ent
body a
nd o
f th
e m
anag
em
ent body c
olle
ctively
, and r
eport
to the
manag
em
ent
body a
ccord
ing
ly;
(d)
periodic
ally
revie
w t
he p
olic
y o
f th
e m
anag
em
ent
body f
or
sele
ction and appoin
tment
of
senio
r m
anag
em
ent
and m
ake
recom
mendations t
o the m
anag
em
ent
body.
In p
erf
orm
ing
its
duties,
the n
om
ination c
om
mitte
e s
hall,
to t
he
exte
nt
possib
le a
nd o
n a
n o
ng
oin
g b
asis
, ta
ke a
ccount
of
the
need t
o e
nsure
that th
e m
anag
em
ent body’s
decis
ion m
akin
g is
not dom
inate
d b
y a
ny o
ne in
div
idual o
r sm
all
gro
up o
f in
div
iduals
in
a m
anner
that
is d
etr
imenta
l to
the i
nte
rests
of
the m
ark
et
opera
tor
as a
whole
.
In p
erf
orm
ing its
duties, th
e n
om
ination c
om
mitte
e s
hall
be a
ble
to
use a
ny f
orm
s o
f re
sourc
es i
t deem
s a
ppro
priate
, in
clu
din
g
exte
rnal advic
e.
28
AR
TIC
LE
T
EX
T
TR
AN
SP
OS
ITIO
N I
N F
INA
NC
IAL
S
ER
VIC
ES
AN
D M
AR
KE
TS
AC
T
2000 (
MA
RK
ET
S I
N F
INA
NC
IAL
IN
ST
RU
ME
NT
S)
RE
GU
LA
TIO
NS
2017
RE
SP
ON
SIB
LE
B
OD
Y
Where
, under
national
law
, th
e m
anag
em
ent
body does not
have
any
com
pete
nce
in
the
pro
cess
of
sele
ction
and
appoin
tment
of
any o
f its m
em
bers
, th
is p
ara
gra
ph s
hall
not
apply
.
5.
Mem
ber
Sta
tes o
r com
pete
nt
auth
orities s
hall
req
uire m
ark
et
opera
tors
and
their
respective
nom
ination
com
mitte
es
to
eng
ag
e
a
bro
ad
set
of
qualit
ies
and
com
pete
nces
when
recru
itin
g
mem
bers
to
th
e
manag
em
ent
body
and
for
that
purp
ose to
put
in pla
ce a polic
y pro
moting div
ers
ity on th
e
manag
em
ent
body.
6.
Mem
ber
Sta
tes s
hall
ensure
that
the m
anag
em
ent
body o
f a
mark
et opera
tor
defines a
nd o
vers
ees the im
ple
menta
tion o
f th
e
govern
ance arr
angem
ents
th
at
ensure
eff
ective and pru
dent
manag
em
ent
of
an o
rganis
ation,
inclu
din
g t
he s
egre
gation o
f duties in
th
e org
anis
ation and th
e pre
vention of
conflic
ts of
inte
rest, and in
a m
anner
that
pro
mote
s th
e in
teg
rity
of
the
mark
et.
Mem
ber
Sta
tes
shall
ensure
th
at
the
manag
em
ent
body
monitors
and periodic
ally
assesses th
e eff
ectiveness of
the
mark
et
opera
tor’s
govern
ance
arr
ang
em
ents
and
takes
appro
priate
ste
ps to a
ddre
ss a
ny d
eficie
ncie
s.
Mem
bers
of th
e m
anag
em
ent body s
hall
have a
deq
uate
access
to in
form
ation a
nd d
ocum
ents
whic
h a
re n
eeded to o
vers
ee a
nd
monitor
manag
em
ent
decis
ion-m
akin
g.
…..…
….
29
AR
TIC
LE
T
EX
T
TR
AN
SP
OS
ITIO
N I
N F
INA
NC
IAL
S
ER
VIC
ES
AN
D M
AR
KE
TS
AC
T
2000 (
MA
RK
ET
S I
N F
INA
NC
IAL
IN
ST
RU
ME
NT
S)
RE
GU
LA
TIO
NS
2017
RE
SP
ON
SIB
LE
B
OD
Y
8. M
em
ber
Sta
tes s
hall
req
uire the m
ark
et opera
tor
to n
otify
the
com
pete
nt
auth
ority
of
the
identity
of
all
mem
bers
of
its
manag
em
ent body a
nd o
f any c
hang
es to it
s m
em
bers
hip
, alo
ng
w
ith
all
info
rmation
needed
to
assess
wheth
er
the
mark
et
opera
tor
com
plie
s w
ith p
ara
gra
phs 1
to 5
.
Art
icle
47(1
) (p
art
) and (
2)
of
MiF
ID I
I
Org
anis
ational re
quirem
ents
1.
Mem
ber
Sta
tes s
hall
req
uire t
he r
eg
ula
ted m
ark
et:
(a)
to h
ave a
rrang
em
ents
to i
dentify
cle
arly a
nd m
anag
e t
he
pote
ntial
advers
e
conseq
uences,
for
the
opera
tion
of
the
reg
ula
ted m
ark
et
or
for
its m
em
bers
or
part
icip
ants
, of
any
conflic
t of
inte
rest
betw
een t
he inte
rest
of
the r
egula
ted m
ark
et,
its o
wners
or
its m
ark
et
opera
tor
and t
he s
ound f
unctionin
g o
f th
e r
eg
ula
ted m
ark
et, a
nd i
n p
art
icula
r w
here
such c
onflic
ts o
f in
tere
st
mig
ht
pro
ve p
reju
dic
ial
to t
he a
ccom
plis
hm
ent
of
any
functions d
ele
gate
d t
o t
he r
eg
ula
ted m
ark
et
by t
he c
om
pete
nt
auth
ority
;
(b)
to b
e a
deq
uate
ly e
quip
ped t
o m
anag
e the r
isks t
o w
hic
h it
is
exposed,
to im
ple
ment
appro
priate
arr
ang
em
ents
and s
yste
ms
to identify
all
sig
nific
ant risks to its
opera
tion, and to p
ut in
pla
ce
eff
ective m
easure
s to m
itig
ate
those r
isks;
(c)
to have arr
ang
em
ents
for
the sound m
anagem
ent
of
the
technic
al opera
tions o
f th
e s
yste
m,
inclu
din
g t
he e
sta
blis
hm
ent
of
eff
ective conting
ency arr
ang
em
ents
to
cope w
ith risks of
syste
ms d
isru
ptions;
(d)
to
have
transpare
nt
and
non-d
iscre
tionary
ru
les
and
pro
cedure
s that pro
vid
e for
fair a
nd o
rderly tra
din
g a
nd e
sta
blis
h
obje
ctive c
rite
ria for
the e
ffic
ient execution o
f ord
ers
;
Para
gra
ph 1
(6)
of
Schedule
3
am
endin
g p
ara
gra
ph 3
of
the R
RR
(S
)
Para
gra
ph 1
(7)
of
Schedule
3
am
endin
g p
ara
gra
ph 4
of th
e R
RR
(S
)
Para
gra
ph 1
(15)
of
Schedule
3
insert
ing p
ara
gra
ph 9
ZA
of
the
RR
R (
S)
HM
T
30
AR
TIC
LE
T
EX
T
TR
AN
SP
OS
ITIO
N I
N F
INA
NC
IAL
S
ER
VIC
ES
AN
D M
AR
KE
TS
AC
T
2000 (
MA
RK
ET
S I
N F
INA
NC
IAL
IN
ST
RU
ME
NT
S)
RE
GU
LA
TIO
NS
2017
RE
SP
ON
SIB
LE
B
OD
Y
(e)
to h
ave e
ffective a
rrang
em
ents
to f
acili
tate
the e
ffic
ient
and
tim
ely
finalis
ation
of
the
transactions
execute
d
under
its
syste
ms;
(f)
to h
ave a
vaila
ble
, at
the t
ime o
f auth
orisation a
nd o
n a
n
ong
oin
g
basis
, suff
icie
nt
financia
l re
sourc
es
to
facili
tate
its
ord
erly functionin
g, havin
g r
eg
ard
to the n
atu
re a
nd e
xte
nt of th
e
transactions c
onclu
ded o
n the m
ark
et and the r
ang
e a
nd d
egre
e
of
the r
isks to w
hic
h it
is e
xposed.
2.
Mem
ber
Sta
tes s
hall
not
allo
w m
ark
et
opera
tors
to e
xecute
clie
nt ord
ers
ag
ain
st pro
prieta
ry c
apital, o
r to
eng
ag
e in
matc
hed
princip
al tr
adin
g o
n a
ny o
f th
e r
eg
ula
ted m
ark
ets
they o
pera
te.
Art
icle
48(1
) to
(4),
(5)
(part
), (
7)
to
(9)
and (
10)
(part
) (a
s
applie
d b
y
Art
icle
18(5
))
of
MiF
ID I
I
Syste
ms r
esili
ence,
circuit b
reakers
and e
lectr
onic
tra
din
g
1.
Mem
ber
Sta
tes s
hall
req
uire a
reg
ula
ted m
ark
et
to h
ave i
n
pla
ce
eff
ective
syste
ms,
pro
cedure
s
and
arr
ang
em
ents
to
ensure
its
tra
din
g s
yste
ms a
re r
esili
ent, h
ave s
uff
icie
nt
capacity
to deal
with peak ord
er
and m
essag
e volu
mes,
are
able
to
ensure
ord
erly tra
din
g u
nder
conditio
ns o
f severe
mark
et str
ess,
are
fu
lly te
ste
d to
ensure
such conditio
ns are
m
et
and are
subje
ct
to e
ffective b
usin
ess c
ontinuity a
rrang
em
ents
to e
nsure
continuity of
its serv
ices if th
ere
is
any fa
ilure
of
its tr
adin
g
syste
ms.
2.
Mem
ber
Sta
tes s
hall
req
uire a
reg
ula
ted m
ark
et
to h
ave i
n
pla
ce:
(a)
writt
en agre
em
ents
w
ith all
investm
ent
firm
s purs
uin
g a
mark
et m
akin
g s
trate
gy o
n t
he r
eg
ula
ted m
ark
et;
(b)
schem
es t
o e
nsure
that
a s
uff
icie
nt
num
ber
of
investm
ent
firm
s p
art
icip
ate
in s
uch a
gre
em
ents
whic
h r
eq
uire them
to p
ost
Para
gra
ph 1
(6)
of
Schedule
3
am
endin
g p
ara
gra
ph 3
of th
e R
RR
(S
) and insert
ing p
ara
gra
phs 3
A,
3B
, 3C
, 3D
, 3E
and 3
F o
f th
e R
RR
(S
)
HM
T
31
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TIC
LE
T
EX
T
TR
AN
SP
OS
ITIO
N I
N F
INA
NC
IAL
S
ER
VIC
ES
AN
D M
AR
KE
TS
AC
T
2000 (
MA
RK
ET
S I
N F
INA
NC
IAL
IN
ST
RU
ME
NT
S)
RE
GU
LA
TIO
NS
2017
RE
SP
ON
SIB
LE
B
OD
Y
firm
quote
s a
t com
petitive p
rices w
ith t
he r
esult o
f pro
vid
ing
liquid
ity to the m
ark
et on a
reg
ula
r and p
redic
table
basis
, w
here
such a
req
uirem
ent is
appro
priate
to the n
atu
re a
nd s
cale
of th
e
tradin
g o
n t
hat re
gula
ted m
ark
et.
3. T
he w
ritt
en a
gre
em
ent re
ferr
ed to in
para
gra
ph 2
shall
at le
ast
specify:
(a)
the
oblig
ations
of
the
investm
ent
firm
in
re
lation
to
the
pro
vis
ion o
f liq
uid
ity a
nd w
here
applic
able
an
y o
ther
oblig
ation
arisin
g fro
m p
art
icip
ation in
the s
chem
e r
efe
rred to in
para
gra
ph
2(b
);
(b)
any in
centives in
term
s o
f re
bate
s o
r oth
erw
ise o
ffere
d b
y the
reg
ula
ted m
ark
et to
an investm
ent firm
so a
s to p
rovid
e liq
uid
ity
to t
he m
ark
et
on a
reg
ula
r and p
redic
table
basis
and,
where
applic
able
, any o
ther
rights
accru
ing
to the investm
ent firm
as a
re
sult o
f part
icip
ation i
n t
he s
chem
e r
efe
rred t
o i
n p
ara
gra
ph
2(b
).
The r
eg
ula
ted m
ark
et
shall
monitor
and e
nfo
rce c
om
plia
nce b
y
investm
ent
firm
s w
ith t
he r
eq
uirem
ents
of
such b
indin
g w
ritt
en
agre
em
ents
. T
he r
eg
ula
ted m
ark
et
shall
info
rm t
he c
om
pete
nt
auth
ority
about th
e c
onte
nt of th
e b
indin
g w
ritt
en a
gre
em
ent and
shall,
upon
req
uest,
pro
vid
e
all
furt
her
info
rmation
to
the
com
pete
nt
auth
ority
necessary
to
enable
th
e
com
pete
nt
auth
ority
to s
atisfy
its
elf o
f com
plia
nce b
y t
he r
egula
ted m
ark
et
with t
his
para
gra
ph.
4.
Mem
ber
Sta
tes s
hall
req
uire a
reg
ula
ted m
ark
et
to h
ave i
n
pla
ce e
ffective s
yste
ms, pro
cedure
s a
nd a
rrangem
ents
to r
eje
ct
32
AR
TIC
LE
T
EX
T
TR
AN
SP
OS
ITIO
N I
N F
INA
NC
IAL
S
ER
VIC
ES
AN
D M
AR
KE
TS
AC
T
2000 (
MA
RK
ET
S I
N F
INA
NC
IAL
IN
ST
RU
ME
NT
S)
RE
GU
LA
TIO
NS
2017
RE
SP
ON
SIB
LE
B
OD
Y
ord
ers
that exceed p
re-d
ete
rmin
ed v
olu
me a
nd p
rice thre
shold
s
or
are
cle
arly e
rroneous.
5.
Mem
ber
Sta
tes s
hall
req
uire a
reg
ula
ted m
ark
et to
be a
ble
to
tem
pora
rily
halt o
r constr
ain
tra
din
g if th
ere
is a
sig
nific
ant
price
movem
ent
in a
fin
ancia
l in
str
um
ent
on t
hat
mark
et
or
a r
ela
ted
mark
et
during a
short
period a
nd,
in e
xceptional
cases,
to b
e
able
to c
ancel, v
ary
or
corr
ect
any t
ransaction.
Mem
ber
Sta
tes
shall
req
uire a
reg
ula
ted m
ark
et
to e
nsure
that
the p
ara
mete
rs
for
haltin
g t
radin
g a
re a
ppro
priate
ly c
alib
rate
d i
n a
way w
hic
h
takes i
nto
account
the l
iquid
ity o
f diffe
rent
asset
cla
sses a
nd
sub-c
lasses,
the n
atu
re o
f th
e m
ark
et
model and t
ypes o
f users
and is
suff
icie
nt to
avoid
sig
nific
ant dis
ruptions to the o
rderlin
ess
of
tradin
g.
Mem
ber
Sta
tes s
hall
ensure
that a r
eg
ula
ted m
ark
et re
port
s the
para
mete
rs for haltin
g tra
din
g a
nd a
ny m
ate
rial c
hang
es to those
para
mete
rs
to
the
com
pete
nt
auth
ority
in
a
consis
tent
and
com
para
ble
manner,
and t
hat
the c
om
pete
nt
auth
ority
shall
in
turn
report
them
to E
SM
A.
Mem
ber
Sta
tes s
hall
req
uire t
hat
where
a r
eg
ula
ted m
ark
et
whic
h is m
ate
rial in
term
s o
f liq
uid
ity
in t
hat
financia
l in
str
um
ent
halts t
radin
g,
in a
ny M
em
ber
Sta
te,
that
tradin
g v
enue h
as t
he n
ecessary
syste
ms a
nd p
rocedure
s
in p
lace to e
nsure
that it w
ill n
otify
com
pete
nt auth
orities in
ord
er
for
them
to c
oord
inate
a m
ark
et-
wid
e r
esponse a
nd d
ete
rmin
e
wheth
er it is
appro
priate
to h
alt tra
din
g o
n o
ther venues o
n w
hic
h
the f
inancia
l in
str
um
ent
is t
raded u
ntil
tradin
g r
esum
es o
n t
he
orig
inal m
ark
et.
33
AR
TIC
LE
T
EX
T
TR
AN
SP
OS
ITIO
N I
N F
INA
NC
IAL
S
ER
VIC
ES
AN
D M
AR
KE
TS
AC
T
2000 (
MA
RK
ET
S I
N F
INA
NC
IAL
IN
ST
RU
ME
NT
S)
RE
GU
LA
TIO
NS
2017
RE
SP
ON
SIB
LE
B
OD
Y
6.
Mem
ber
Sta
tes s
hall
req
uire a
reg
ula
ted m
ark
et
to h
ave i
n
pla
ce
eff
ective
syste
ms,
pro
cedure
s
and
arr
ang
em
ents
, in
clu
din
g
req
uirin
g
mem
bers
or
part
icip
ants
to
carr
y
out
appro
priate
testing o
f alg
orith
ms a
nd p
rovid
ing
environm
ents
to
facili
tate
such testing
, to
ensure
that alg
orith
mic
tra
din
g s
yste
ms
cannot
cre
ate
or
contr
ibute
to d
isord
erly t
radin
g c
onditio
ns o
n
the m
ark
et
and to
m
anag
e any dis
ord
erly tr
adin
g conditio
ns
wh
ich d
o a
rise f
rom
such a
lgorith
mic
tra
din
g s
yste
ms,
inclu
din
g
syste
ms t
o l
imit t
he r
atio o
f unexecute
d o
rders
to t
ransactions
that m
ay b
e e
nte
red in
to the s
yste
m b
y a
mem
ber
or
part
icip
ant,
to b
e a
ble
to s
low
dow
n t
he f
low
of
ord
ers
if
there
is a
ris
k o
f its
syste
m capacity bein
g re
ached and to
lim
it and enfo
rce th
e
min
imum
tic
k s
ize t
hat m
ay b
e e
xecute
d o
n the m
ark
et.
7.
Mem
ber
Sta
tes s
hall
req
uire a
reg
ula
ted m
ark
et
that
perm
its
direct
ele
ctr
onic
access
to
have
in
pla
ce
eff
ective
syste
ms
pro
cedure
s
and
arr
angem
ents
to
ensure
th
at
mem
bers
or
part
icip
ants
are
only
perm
itte
d t
o p
rovid
e s
uch s
erv
ices i
f th
ey
are
investm
ent
firm
s a
uth
orised u
nder
this
Directive o
r cre
dit
institu
tions
auth
orised
under
Directive
2013/3
6/E
U,
that
appro
priate
crite
ria a
re s
et
and a
pplie
d r
eg
ard
ing t
he s
uitabili
ty
of
pers
ons t
o w
hom
such a
ccess m
ay b
e p
rovid
ed a
nd t
hat
the
mem
ber
or
part
icip
ant
reta
ins
responsib
ility
fo
r ord
ers
and
trades
execute
d
usin
g
that
serv
ice
in
rela
tion
to
the
req
uirem
ents
of
this
Directive.
Mem
ber
Sta
tes s
hall
als
o r
eq
uire t
hat
the r
eg
ula
ted m
ark
et
set
appro
priate
sta
ndard
s r
eg
ard
ing r
isk c
ontr
ols
and thre
shold
s o
n
tradin
g t
hro
ug
h s
uch a
ccess a
nd i
s a
ble
to d
isting
uis
h a
nd i
f necessary
to s
top o
rders
or
tradin
g b
y a
pers
on u
sin
g d
irect
34
AR
TIC
LE
T
EX
T
TR
AN
SP
OS
ITIO
N I
N F
INA
NC
IAL
S
ER
VIC
ES
AN
D M
AR
KE
TS
AC
T
2000 (
MA
RK
ET
S I
N F
INA
NC
IAL
IN
ST
RU
ME
NT
S)
RE
GU
LA
TIO
NS
2017
RE
SP
ON
SIB
LE
B
OD
Y
ele
ctr
onic
access s
epara
tely
fro
m o
ther
ord
ers
or
tradin
g b
y the
mem
ber
or
part
icip
ant.
The
reg
ula
ted
mark
et
shall
have
arr
ang
em
ents
in
pla
ce
to
suspend o
r te
rmin
ate
the p
rovis
ion o
f direct ele
ctr
onic
access b
y
a m
em
ber or part
icip
ant to
a c
lient in
the c
ase o
f non-c
om
plia
nce
with t
his
para
gra
ph.
8. M
em
ber S
tate
s s
hall
req
uire a
reg
ula
ted m
ark
et to
ensure
that
its r
ule
s o
n c
o-location s
erv
ices a
re t
ranspare
nt, f
air a
nd n
on-
dis
crim
inato
ry.
9.
Mem
ber
Sta
tes s
hall
req
uire t
hat
a r
eg
ula
ted m
ark
et
ensure
th
at its fee s
tructu
res in
clu
din
g e
xecution fees, ancill
ary
fees a
nd
any rebate
s a
re tra
nspare
nt,
fair a
nd n
on-d
iscrim
inato
ry a
nd that
they d
o n
ot
cre
ate
incentives t
o p
lace,
modify o
r cancel ord
ers
or
to
execute
tr
ansactions
in
a
way
whic
h
contr
ibute
s
to
dis
ord
erly
tradin
g
conditio
ns
or
mark
et
abuse.
In
part
icula
r,
Mem
ber
Sta
tes
shall
req
uire
a re
gula
ted m
ark
et
to
impose
mark
et
makin
g oblig
ations in
in
div
idua
l share
s or
a suitable
basket
of share
s in e
xchang
e f
or
any r
ebate
s t
hat are
gra
nte
d.
Mem
ber
Sta
tes s
hall
allo
w a
reg
ula
ted m
ark
et
to a
dju
st
its f
ees
for
cancelle
d o
rders
accord
ing to the le
ngth
of tim
e for
whic
h the
ord
er
was m
ain
tain
ed a
nd t
o c
alib
rate
the fees to e
ach f
inancia
l in
str
um
ent to
whic
h t
hey a
pply
.
Mem
ber S
tate
s m
ay a
llow
a reg
ula
ted m
ark
et to
impose a
hig
her
fee f
or
pla
cin
g a
n o
rder
that
is s
ubseq
uently c
ancelle
d t
han a
n
ord
er
whic
h
is
execute
d
and
to
impose
a
hig
her
fee
on
part
icip
ants
pla
cin
g a
hig
h r
atio o
f cancelle
d o
rders
to e
xecute
d
35
AR
TIC
LE
T
EX
T
TR
AN
SP
OS
ITIO
N I
N F
INA
NC
IAL
S
ER
VIC
ES
AN
D M
AR
KE
TS
AC
T
2000 (
MA
RK
ET
S I
N F
INA
NC
IAL
IN
ST
RU
ME
NT
S)
RE
GU
LA
TIO
NS
2017
RE
SP
ON
SIB
LE
B
OD
Y
ord
ers
and o
n t
hose o
pera
ting
a h
igh-
freq
uency a
lgorith
mic
tr
adin
g t
echniq
ue i
n o
rder
to r
eflect
the a
dditio
nal
burd
en o
n
syste
m c
apacity.
10.
Mem
ber
Sta
tes s
hall
req
uire a
reg
ula
ted m
ark
et
to b
e a
ble
to
identify
, by m
eans o
f flagg
ing f
rom
mem
bers
or
part
icip
ants
, ord
ers
genera
ted b
y a
lgorith
mic
tra
din
g, th
e d
iffe
rent alg
orith
ms
used for th
e c
reation o
f ord
ers
and the rele
vant pers
ons in
itia
ting
those o
rders
. T
hat
info
rmation s
hall
be a
vaila
ble
to c
om
pete
nt
auth
orities u
pon r
eq
uest.
Art
icle
49(1
) and (
2)
(as
applie
d b
y
Art
icle
18(5
))
of
MiF
ID I
I
Tic
k s
izes
1.
Mem
ber
Sta
tes s
hall
req
uire r
eg
ula
ted m
ark
ets
to a
dopt
tick
siz
e r
eg
imes i
n s
hare
s,
depositary
receip
ts,
exchang
e-t
raded
funds,
cert
ific
ate
s a
nd o
ther
sim
ilar
financia
l in
str
um
ents
and in
any oth
er
financia
l in
str
um
ent
for
whic
h re
gula
tory
te
chnic
al
sta
ndard
s a
re d
evelo
ped in a
ccord
ance w
ith p
ara
gra
ph 4
.
2. T
he t
ick s
ize r
eg
imes r
efe
rred to in p
ara
gra
ph 1
shall:
(a
) be c
alib
rate
d t
o r
eflect
the l
iquid
ity p
rofile
of
the f
inancia
l in
str
um
ent in
diffe
rent m
ark
ets
and the a
vera
ge b
id-a
sk s
pre
ad,
takin
g in
to a
ccount th
e d
esirabili
ty o
f enablin
g r
easonably
sta
ble
prices w
ithout unduly
constr
ain
ing
furt
her
narr
ow
ing
of spre
ads;
(b) adapt t
he tic
k s
ize for each fin
ancia
l instr
um
ent appro
priate
ly.
Para
gra
ph 1
(6)
of
Schedule
3
insert
ing p
ara
gra
ph 3
G o
f th
e R
RR
(S
)
HM
T
Art
icle
50(1
) (a
s a
pplie
d
by A
rtic
le
1.5
) of
MiF
ID
II
Mem
ber
Sta
tes s
hall
req
uire t
hat
all
tradin
g v
enues a
nd t
heir
mem
bers
or
part
icip
ants
synchro
nis
e t
he b
usin
ess c
locks t
hey
use t
o r
ecord
the d
ate
and t
ime o
f any r
eport
able
event.
Reg
ula
tion 3
5
Para
gra
ph 1
(6)
of
Schedule
3
insert
ing p
ara
gra
ph 3
H o
f th
e R
RR
(S
)
HM
T
36
AR
TIC
LE
T
EX
T
TR
AN
SP
OS
ITIO
N I
N F
INA
NC
IAL
S
ER
VIC
ES
AN
D M
AR
KE
TS
AC
T
2000 (
MA
RK
ET
S I
N F
INA
NC
IAL
IN
ST
RU
ME
NT
S)
RE
GU
LA
TIO
NS
2017
RE
SP
ON
SIB
LE
B
OD
Y
Art
icle
51(1
) to
(5)
of
MiF
ID I
I
Adm
issio
n o
f financia
l in
str
um
ents
to tra
din
g
1.
Mem
ber
Sta
tes shall
req
uire th
at
reg
ula
ted m
ark
ets
have
cle
ar
and t
ranspare
nt
rule
s r
eg
ard
ing t
he a
dm
issio
n o
f financia
l in
str
um
ents
to tra
din
g.
Those r
ule
s s
hall
ensure
that any fin
ancia
l instr
um
ents
adm
itte
d
to t
radin
g o
n a
reg
ula
ted m
ark
et
are
capable
of
bein
g t
raded in
a
fair,
ord
erly
and
eff
icie
nt
manner
and,
in
the
case
of
transfe
rable
securities,
are
fre
ely
neg
otiable
.
2. In
the c
ase o
f derivatives, th
e r
ule
s r
efe
rred to in
para
gra
ph 1
shall
ensure
in
part
icula
r th
at
the
desig
n
of
the
derivative
contr
act allo
ws for
its o
rderly p
ricin
g a
s w
ell
as for
the e
xis
tence
of
eff
ective s
ett
lem
ent conditio
ns.
3.
In a
dditio
n t
o t
he o
blig
ations s
et
out
in p
ara
gra
phs 1
and 2
, M
em
ber
Sta
tes s
hall
require t
he r
eg
ula
ted m
ark
et
to e
sta
blis
h
and m
ain
tain
eff
ective a
rrang
em
ents
to v
erify
that
issuers
of
transfe
rable
securities
that
are
adm
itte
d
to
tradin
g
on
the
reg
ula
ted m
ark
et
com
ply
with t
heir o
blig
ations u
nder
Unio
n la
w
in r
espect
of
initia
l, o
ng
oin
g o
r ad h
oc d
isclo
sure
oblig
ations.
Mem
ber
Sta
tes
shall
ensure
th
at
the
regula
ted
mark
et
esta
blis
hes
arr
ang
em
ents
w
hic
h
facili
tate
its
mem
bers
or
part
icip
ants
in o
bta
inin
g a
ccess t
o i
nfo
rmation w
hic
h h
as b
een
made p
ublic
under
Unio
n law
.
4.
Mem
ber
Sta
tes shall
ensure
th
at
reg
ula
ted m
ark
ets
have
esta
blis
hed the n
ecessary
arr
ang
em
ents
to r
evie
w r
eg
ula
rly the
Para
gra
ph 1
(10)
of
Schedule
3
am
endin
g p
ara
gra
ph 7
A o
f th
e
RR
R (
S)
P
ara
gra
ph 1
(15)
of
Schedule
3
insert
ing p
ara
gra
ph 9
ZB
of
the
RR
R (
S)
HM
T
37
AR
TIC
LE
T
EX
T
TR
AN
SP
OS
ITIO
N I
N F
INA
NC
IAL
S
ER
VIC
ES
AN
D M
AR
KE
TS
AC
T
2000 (
MA
RK
ET
S I
N F
INA
NC
IAL
IN
ST
RU
ME
NT
S)
RE
GU
LA
TIO
NS
2017
RE
SP
ON
SIB
LE
B
OD
Y
com
plia
nce w
ith th
e adm
issio
n re
quirem
ents
of
the financia
l in
str
um
ents
whic
h t
hey a
dm
it to tra
din
g.
5. A
tra
nsfe
rable
security
that has b
een a
dm
itte
d to tra
din
g o
n a
re
gula
ted m
ark
et
can s
ubseq
uently b
e a
dm
itte
d t
o t
radin
g o
n
oth
er
reg
ula
ted m
ark
ets
, even w
ithout
the c
onsent
of
the issuer
and
in
com
plia
nce
with
the
rele
vant
pro
vis
ions
of
Directive
2003/7
1/E
C.
The is
suer
shall
be in
form
ed by th
e re
gula
ted
mark
et of th
e fact th
at its s
ecurities a
re tra
ded o
n that re
gula
ted
mark
et. T
he is
suer
shall
not
be subje
ct
to any
oblig
ation to
pro
vid
e i
nfo
rmation r
eq
uired u
nder
para
gra
ph 3
directly t
o a
ny
reg
ula
ted m
ark
et
whic
h h
as a
dm
itte
d t
he i
ssuer’s s
ecurities t
o
tradin
g w
ithout
its c
onsent.
Art
icle
52(1
) of
MiF
ID I
I S
uspensio
n a
nd r
em
oval
of
financia
l in
str
um
ents
fro
m t
radin
g
on a
reg
ula
ted m
ark
et
1. W
ithout pre
judic
e to the r
ight of th
e c
om
pete
nt auth
ority
under
Art
icle
69(2
) to
dem
and s
uspensio
n o
r re
moval
of
a f
inancia
l in
str
um
ent
from
tr
adin
g,
a m
ark
et
opera
tor
may suspend or
rem
ove fr
om
tr
adin
g a financia
l in
str
um
ent
whic
h no lo
ng
er
com
plie
s w
ith t
he r
ule
s o
f th
e r
eg
ula
ted m
ark
et
unle
ss s
uch
suspensio
n
or
rem
oval
would
be
likely
to
cause
sig
nific
ant
dam
ag
e t
o t
he i
nvesto
rs’
inte
rests
or
the o
rderly f
unctionin
g o
f th
e m
ark
et.
Para
gra
ph 1
(13)
of
Schedule
3
am
endin
g p
ara
gra
ph 7
E o
f th
e
RR
R (
S)
HM
T
Art
icle
52(2
) of
MiF
ID I
I M
em
ber
Sta
tes
shall
req
uire
that
a
mark
et
opera
tor
that
suspends o
r re
moves f
rom
tra
din
g a
fin
ancia
l in
str
um
ent
als
o
suspends o
r re
moves the d
erivatives a
s r
efe
rred to in p
oin
ts (
4)
to (
10)
of
Section C
of
Annex I
that
rela
te o
r are
refe
renced t
o
that
financia
l in
str
um
ent
where
necessary
to
support
th
e
obje
ctives
of
the
suspensio
n
or
rem
oval
of
the
underlyin
g
Para
gra
ph 3
9 to 4
2 o
f S
chedule
2
am
endin
g P
art
18A
FS
MA
P
ara
gra
ph 1
(13)
of
Schedule
3
am
endin
g p
ara
gra
ph 7
E o
f th
e
RR
R (
S)
HM
T
38
AR
TIC
LE
T
EX
T
TR
AN
SP
OS
ITIO
N I
N F
INA
NC
IAL
S
ER
VIC
ES
AN
D M
AR
KE
TS
AC
T
2000 (
MA
RK
ET
S I
N F
INA
NC
IAL
IN
ST
RU
ME
NT
S)
RE
GU
LA
TIO
NS
2017
RE
SP
ON
SIB
LE
B
OD
Y
financia
l in
str
um
ent. T
he m
ark
et
opera
tor
shall
make p
ublic
its
decis
ion
on
the
suspensio
n
or
rem
oval
of
the
financia
l in
str
um
ent
and o
f any r
ela
ted d
erivative a
nd c
om
munic
ate
the
rele
vant
decis
ions t
o its
com
pete
nt
auth
ority
. T
he c
om
pete
nt
auth
ority
, in
whose j
urisdic
tion t
he s
uspensio
n
or re
moval o
rig
inate
d, shall
req
uire that oth
er re
gula
ted m
ark
ets
, M
TF
s,
OT
Fs a
nd s
yste
matic i
nte
rnalis
ers
, w
hic
h f
all
under
its
jurisdic
tion
and
trade
the
sam
e
financia
l in
str
um
ent
or
derivatives a
s r
efe
rred t
o i
n p
oin
ts (
4)
to (
10)
of
Section C
of
Annex I
to t
his
Directive t
hat
rela
te o
r are
refe
renced t
o t
hat
financia
l in
str
um
ent,
als
o
suspend
or
rem
ove
that
financia
l in
str
um
ent
or
derivatives f
rom
tra
din
g,
where
the s
uspensio
n o
r re
moval
is d
ue t
o s
uspecte
d m
ark
et
abuse,
a t
ake-o
ver
bid
or
the n
on-
dis
clo
sure
of
insid
e i
nfo
rmation a
bout
the i
ssuer
or
financia
l in
str
um
ent
infr
ing
ing
Art
icle
s 7
and 1
7 o
f R
eg
ula
tion
(EU
) N
o.
596/2
014 e
xcept
where
such s
uspensio
n o
r re
moval
could
cause s
ignific
ant dam
ag
e to the investo
rs’ i
nte
rests
or
the
ord
erly f
unctionin
g o
f th
e m
ark
et.
Each
notified
com
pete
nt
auth
ority
shall
com
munic
ate
its
decis
ion to E
SM
A a
nd o
ther
com
pete
nt auth
orities, in
clu
din
g a
n
expla
nation if
the d
ecis
ion w
as n
ot
to s
uspend o
r re
move f
rom
tr
adin
g t
he f
inancia
l in
str
um
ent
or
derivatives a
s r
efe
rred t
o i
n
poin
ts (
4)
to (
10)
of
Section C
of
Annex I
that
rela
te o
r are
re
fere
nced to that financia
l in
str
um
ent.
39
AR
TIC
LE
T
EX
T
TR
AN
SP
OS
ITIO
N I
N F
INA
NC
IAL
S
ER
VIC
ES
AN
D M
AR
KE
TS
AC
T
2000 (
MA
RK
ET
S I
N F
INA
NC
IAL
IN
ST
RU
ME
NT
S)
RE
GU
LA
TIO
NS
2017
RE
SP
ON
SIB
LE
B
OD
Y
The com
pete
nt
auth
ority
shall
imm
edia
tely
m
ake public
and
com
munic
ate
to E
SM
A and t
he c
om
pete
nt
auth
orities o
f th
e
oth
er
Mem
ber
Sta
tes s
uch a
decis
ion.
The n
otified c
om
pete
nt
auth
orities o
f th
e o
ther
Mem
ber
Sta
tes
shall
req
uire t
hat
reg
ula
ted m
ark
ets
, oth
er
MT
Fs,
oth
er
OT
Fs
and s
yste
matic i
nte
rnalis
ers
, w
hic
h f
all
under
their j
urisdic
tion
and t
rade t
he s
am
e f
inancia
l in
str
um
ent
or
derivatives r
efe
rred
to i
n p
oin
ts (
4)
to (
10)
of
Section C
of
Annex I
to t
his
Directive
that
rela
te o
r are
refe
renced t
o t
hat
financia
l in
str
um
ent, a
lso
suspend o
r re
move t
hat
financia
l in
str
um
ent
or
derivatives f
rom
tr
adin
g, w
here
th
e suspensio
n or
rem
oval i
s d
ue to s
uspecte
d
mark
et
abuse,
a t
ake-o
ver
bid
or
the n
on-
dis
clo
sure
of
insid
e
info
rmation a
bout
the i
ssuer
or
financia
l in
str
um
ent
infr
ing
ing
Art
icle
s 7
and 1
7 o
f R
eg
ula
tion (
EU
) N
o 5
96/2
014 e
xcept w
here
such s
uspensio
n o
r re
moval could
cause s
ignific
ant
dam
ag
e t
o
the investo
rs’ in
tere
sts
or
the o
rderly f
unctionin
g o
f th
e m
ark
et.
This
para
gra
ph a
pplie
s a
lso w
hen t
he s
uspensio
n f
rom
tra
din
g
of a fin
ancia
l instr
um
ent or
derivatives a
s r
efe
rred to in
poin
ts (
4)
to (
10)
of
Section C
of
Annex I
that
rela
te o
r are
refe
renced t
o
that financia
l in
str
um
ent
is lifte
d.
The n
otification p
rocedure
refe
rred to in
this
para
gra
ph s
hall
als
o
apply
in the c
ase w
here
the d
ecis
ion to s
uspend o
r re
move fro
m
tradin
g a
fin
ancia
l in
str
um
ent
or
derivatives a
s r
efe
rred t
o i
n
poin
ts (
4)
to (
10)
of
Section C
of
Annex I
that
rela
te o
r are
re
fere
nced to that financia
l instr
um
ent is
taken b
y the c
om
pete
nt
auth
ority
purs
uant to
poin
ts (
m)
and (
n)
of
Art
icle
69(2
).
40
AR
TIC
LE
T
EX
T
TR
AN
SP
OS
ITIO
N I
N F
INA
NC
IAL
S
ER
VIC
ES
AN
D M
AR
KE
TS
AC
T
2000 (
MA
RK
ET
S I
N F
INA
NC
IAL
IN
ST
RU
ME
NT
S)
RE
GU
LA
TIO
NS
2017
RE
SP
ON
SIB
LE
B
OD
Y
Art
icle
53(3
),
of
MiF
ID I
I (a
s a
pplie
d
by A
rtic
le
19(2
))
Reg
ula
ted
mark
ets
m
ay
adm
it
as
mem
bers
or
part
icip
ants
in
vestm
ent
firm
s,
cre
dit i
nstitu
tions a
uth
orised u
nder
Directive
2013/3
6/E
U a
nd o
ther
pers
ons w
ho:
(a)
are
of
suff
icie
nt g
ood r
epute
;
(b)
have a
suff
icie
nt
level
of
tradin
g a
bili
ty,
com
pete
nce a
nd
experience;
(c)
have,
where
applic
able
, adeq
uate
org
anis
ational
arr
ang
em
ents
;
(d)
have s
uff
icie
nt
resourc
es f
or
the r
ole
they a
re t
o p
erf
orm
, ta
kin
g into
account
the d
iffe
rent
financia
l arr
ang
em
ents
that
the
reg
ula
ted m
ark
et
may h
ave e
sta
blis
hed i
n o
rder
to g
uara
nte
e
the a
deq
uate
sett
lem
ent of
transactions.
Para
gra
ph 1
(15)
of
Schedule
3
insert
ing p
ara
gra
ph 9
ZC
of
the
RR
R (
S)
P
ara
gra
ph 1
(17)
of
Schedule
3
insert
ing p
ara
gra
ph 9
C o
f th
e R
RR
(S
)
HM
T
Art
icle
54(1
) of
MiF
ID I
I M
em
ber
Sta
tes s
hall
req
uire t
hat
reg
ula
ted m
ark
ets
esta
blis
h
and m
ain
tain
eff
ective a
rrang
em
ents
and p
rocedure
s i
nclu
din
g
the
necessary
re
sourc
e
for
the
reg
ula
r m
onitoring
of
the
com
plia
nce b
y t
heir m
em
bers
or
part
icip
ants
with t
heir r
ule
s.
Reg
ula
ted
mark
ets
shall
monitor
ord
ers
sent
inclu
din
g
cancella
tions a
nd the tra
nsactions u
ndert
aken b
y their m
em
bers
or
part
icip
ants
under
their
syste
ms
in
ord
er
to
identify
in
frin
gem
ents
of
those ru
les,
dis
ord
erly tr
adin
g conditio
ns or
conduct
that
may i
ndic
ate
behavio
ur
that
is p
rohib
ited u
nder
Reg
ula
tion (
EU
) N
o 5
96/2
014 o
r syste
m d
isru
ptions i
n r
ela
tion
to a
fin
ancia
l in
str
um
ent.
Para
gra
ph 1
(6)
of
Schedule
3
am
endin
g p
ara
gra
ph 3
of
the R
RR
(S
)
HM
T
Art
icle
54(2
) of
MiF
ID I
I M
em
ber
Sta
tes
shall
req
uire
the
mark
et
opera
tors
of
the
reg
ula
ted
mark
ets
to
im
media
tely
in
form
th
eir
com
pete
nt
auth
orities o
f sig
nific
ant in
frin
gem
ents
of th
eir r
ule
s o
r dis
ord
erly
tradin
g c
onditio
ns o
r conduct th
at m
ay in
dic
ate
behavio
ur
that is
pro
hib
ited
under
Reg
ula
tion
(EU
) N
o
596/2
014
or
syste
m
dis
ruptions in r
ela
tion to a
fin
ancia
l in
str
um
ent.
Reg
ula
tion 4
3
Para
gra
ph 1
(7)
of
Schedule
3
am
endin
g p
ara
gra
ph 4
of th
e R
RR
(S
)
HM
T
41
AR
TIC
LE
T
EX
T
TR
AN
SP
OS
ITIO
N I
N F
INA
NC
IAL
S
ER
VIC
ES
AN
D M
AR
KE
TS
AC
T
2000 (
MA
RK
ET
S I
N F
INA
NC
IAL
IN
ST
RU
ME
NT
S)
RE
GU
LA
TIO
NS
2017
RE
SP
ON
SIB
LE
B
OD
Y
The
com
pete
nt
auth
orities
of
the
reg
ula
ted
mark
ets
shall
com
munic
ate
to E
SM
A a
nd t
o t
he c
om
pete
nt
auth
orities o
f th
e
oth
er
Mem
ber
Sta
tes th
e in
form
ation re
ferr
ed to
in
th
e firs
t subpara
gra
ph.
In
rela
tion
to
conduct
that
may
indic
ate
behavio
ur
that
is
pro
hib
ited u
nder
Reg
ula
tion (
EU
) N
o 5
96/2
014,
a c
om
pete
nt
auth
ority
shall
be c
onvin
ced that such b
ehavio
ur
is b
ein
g o
r has
been c
arr
ied o
ut
befo
re i
t notifies t
he c
om
pete
nt
auth
orities o
f th
e o
ther
Mem
ber
Sta
tes a
nd E
SM
A.
A
rtic
le 5
6(2
) of
MiF
ID I
I E
ach M
em
ber
Sta
te s
hall
dra
w u
p a
list of th
e r
eg
ula
ted m
ark
ets
fo
r w
hic
h it is
the h
om
e M
em
ber
Sta
te a
nd s
hall
forw
ard
that lis
t to
the o
ther M
em
ber S
tate
s a
nd E
SM
A. A
sim
ilar com
munic
ation
shall
be e
ffecte
d in r
espect
of
each c
hang
e t
o t
hat lis
t.
[full
text not re
pro
duced h
ere
]
Reg
ula
tion 4
1 (
in r
ela
tion t
o t
he
underlin
ed t
ext)
H
MT
Art
icle
57(1
) of
MiF
ID I
I M
em
ber
Sta
tes s
hall
ensure
that
com
pete
nt
auth
orities,
in l
ine
with
the
meth
odolo
gy
for
calc
ula
tion
dete
rmin
ed
by
ES
MA
, esta
blis
h a
nd a
pply
positio
n l
imits o
n t
he s
ize o
f a n
et
positio
n
wh
ich a
pers
on c
an h
old
at
all
tim
es i
n c
om
modity d
erivatives
traded on tr
adin
g venues and econom
ically
eq
uiv
ale
nt
OT
C
contr
acts
. T
he li
mits s
hall
be s
et on the b
asis
of all
positio
ns h
eld
by a
pers
on a
nd t
hose h
eld
on its
behalf a
t an a
gg
reg
ate
gro
up
leve
l in
ord
er
to:
(a)
pre
vent
mark
et
abuse;
(b)
support
ord
erly p
ricin
g a
nd s
ett
lem
ent
conditio
ns,
inclu
din
g
pre
venting
mark
et
dis
tort
ing
positio
ns,
and
ensuring,
in
part
icula
r, c
onverg
ence b
etw
een p
rices o
f derivatives in t
he
deliv
ery
m
onth
and
spot
prices
for
the
underlyin
g
com
modity,
without
pre
judic
e
to
price
dis
covery
on
the
mark
et fo
r th
e u
nderlyin
g c
om
modity.
Reg
ula
tions 1
6 a
nd 1
7
H
MT
42
AR
TIC
LE
T
EX
T
TR
AN
SP
OS
ITIO
N I
N F
INA
NC
IAL
S
ER
VIC
ES
AN
D M
AR
KE
TS
AC
T
2000 (
MA
RK
ET
S I
N F
INA
NC
IAL
IN
ST
RU
ME
NT
S)
RE
GU
LA
TIO
NS
2017
RE
SP
ON
SIB
LE
B
OD
Y
Positio
n li
mits s
hall
not apply
to p
ositio
ns h
eld
by o
r on b
ehalf o
f a n
on-f
inancia
l entity
and w
hic
h a
re o
bje
ctively
measura
ble
as
reducin
g r
isks d
irectly r
ela
ting t
o t
he c
om
merc
ial activity o
f th
at
non-f
inancia
l entity
.
Art
icle
57(2
) of
MiF
ID I
I P
ositio
n lim
its s
hall
specify c
lear
quantita
tive t
hre
shold
s f
or
the
maxim
um
siz
e of
a positio
n in
a com
modity derivative th
at
pers
ons c
an h
old
.
Reg
ula
tion 1
8
HM
T
Art
icle
57(4
) of
MiF
ID I
I A
com
pete
nt
auth
ority
shall
set
limits
for
each
contr
act
in
com
modity d
erivatives t
raded o
n t
radin
g v
enues b
ased o
n t
he
meth
odolo
gy for calc
ula
tion d
ete
rmin
ed b
y E
SM
A in
accord
ance
with p
ara
gra
ph 3
. T
hat
positio
n lim
it s
hall
inclu
de
econom
ically
eq
uiv
ale
nt
OT
C c
ontr
acts
.
A c
om
pete
nt auth
ority
shall
revie
w p
ositio
n lim
its w
here
there
is
a s
ignific
ant chang
e in
deliv
era
ble
supply
or
open in
tere
st or
any
oth
er
sig
nific
ant
chang
e
on
the
mark
et,
based
on
its
dete
rmin
ation o
f deliv
era
ble
supply
and o
pen inte
rest
and r
eset
the
positio
n
limit
in
accord
ance
with
the
meth
odolo
gy
for
calc
ula
tion d
evelo
ped b
y E
SM
A.
Reg
ula
tion 1
9
HM
T
Art
icle
57(5
) of
MiF
ID I
I C
om
pete
nt
auth
orities s
hall
notify
ES
MA
of
the e
xact
positio
n
limits t
hey inte
nd t
o s
et
in a
ccord
ance w
ith t
he m
eth
odolo
gy for
calc
ula
tion e
sta
blis
hed b
y E
SM
A u
nder
para
gra
ph 3
. W
ithin
tw
o m
onth
s f
ollo
win
g r
eceip
t of
the n
otification, E
SM
A s
hall
issue a
n o
pin
ion t
o the c
om
pete
nt
auth
ority
concern
ed
assessin
g t
he c
om
patibili
ty o
f positio
n lim
its w
ith the o
bje
ctives
of
para
gra
ph 1
and w
ith the m
eth
odolo
gy for
calc
ula
tion
esta
blis
hed b
y E
SM
A u
nder
para
gra
ph 3
. E
SM
A s
hall
publis
h
the o
pin
ion o
n its
website. T
he c
om
pete
nt
auth
ority
concern
ed
shall
modify t
he p
ositio
n lim
its in a
ccord
ance w
ith E
SM
A’s
opin
ion,
or
pro
vid
e E
SM
A w
ith justification w
hy t
he c
hang
e is
Reg
ula
tion 2
0
HM
T
43
AR
TIC
LE
T
EX
T
TR
AN
SP
OS
ITIO
N I
N F
INA
NC
IAL
S
ER
VIC
ES
AN
D M
AR
KE
TS
AC
T
2000 (
MA
RK
ET
S I
N F
INA
NC
IAL
IN
ST
RU
ME
NT
S)
RE
GU
LA
TIO
NS
2017
RE
SP
ON
SIB
LE
B
OD
Y
consid
ere
d to b
e u
nnecessary
. W
here
a c
om
pete
nt
auth
ority
im
poses lim
its c
ontr
ary
to a
n E
SM
A o
pin
ion,
it s
hall
imm
edia
tely
publis
h o
n its
website a
notice f
ully
expla
inin
g its
re
asons for
doin
g s
o.
[full
text not re
pro
duced h
ere
] A
rtic
le 5
7(6
) of
MiF
ID I
I W
here
the s
am
e c
om
modity d
erivative is t
raded in s
ignific
ant
volu
mes o
n tra
din
g v
enues in m
ore
than o
ne jurisdic
tion, th
e
com
pete
nt
auth
ority
of
the tra
din
g v
enue w
here
the larg
est
volu
me o
f tr
adin
g takes p
lace (
the c
entr
al com
pete
nt auth
ority
) shall
set th
e s
ing
le p
ositio
n lim
it to b
e a
pplie
d o
n a
ll tr
adin
g in
that contr
act. T
he c
entr
al com
pete
nt auth
ority
shall
consult t
he
com
pete
nt
auth
orities o
f oth
er
tradin
g v
enues o
n w
hic
h t
hat
derivative is t
raded in s
ignific
ant
volu
mes o
n t
he s
ing
le p
ositio
n
limit t
o b
e a
pplie
d a
nd a
ny r
evis
ions t
o t
hat
sin
gle
positio
n lim
it.
Where
com
pete
nt auth
orities d
o n
ot
agre
e, th
ey s
hall
sta
te in
writing
the f
ull
and d
eta
iled r
easons w
hy t
hey c
onsid
er
that th
e
req
uirem
ents
laid
dow
n in p
ara
gra
ph 1
are
not m
et. E
SM
A
shall
sett
le a
ny d
ispute
arisin
g fro
m a
dis
agre
em
ent
betw
een
com
pete
nt
auth
orities in a
ccord
ance w
ith its
pow
ers
under
Art
icle
19 o
f R
eg
ula
tion (
EU
) N
o 1
095/2
010.
The c
om
pete
nt auth
orities o
f th
e tra
din
g v
enues w
here
the
sam
e c
om
modity d
erivative is t
raded a
nd the c
om
pete
nt
auth
orities o
f positio
n h
old
ers
in that com
modity d
erivative
shall
put
in p
lace c
oopera
tion a
rrang
em
ents
inclu
din
g
exchang
e o
f re
levant
data
with e
ach o
ther
in o
rder
to e
nable
th
e m
onitoring a
nd e
nfo
rcem
ent of th
e s
ing
le p
ositio
n lim
it.
Reg
ula
tion 2
1 a
nd 2
2
H
MT
44
AR
TIC
LE
T
EX
T
TR
AN
SP
OS
ITIO
N I
N F
INA
NC
IAL
S
ER
VIC
ES
AN
D M
AR
KE
TS
AC
T
2000 (
MA
RK
ET
S I
N F
INA
NC
IAL
IN
ST
RU
ME
NT
S)
RE
GU
LA
TIO
NS
2017
RE
SP
ON
SIB
LE
B
OD
Y
Art
icle
57(8
) of
MiF
ID I
I M
em
ber
Sta
tes s
hall
ensure
that an investm
ent firm
or
a
mark
et
opera
tor
opera
ting a
tra
din
g v
enue w
hic
h tra
des
com
modity d
erivatives a
pply
positio
n m
anag
em
ent
contr
ols
.
Those c
ontr
ols
shall
inclu
de a
t le
ast, the p
ow
ers
for
the tra
din
g
venue t
o:
(a)
monitor
the o
pen inte
rest positio
ns o
f pers
ons;
(b)
access info
rmation,
inclu
din
g a
ll re
levant
docum
enta
tion,
from
pers
ons a
bout th
e s
ize a
nd p
urp
ose o
f a p
ositio
n o
r exposure
ente
red into
, in
form
ation a
bout beneficia
l or
underlyin
g o
wners
, any c
oncert
arr
ang
em
ents
, and a
ny r
ela
ted
assets
or
liabili
ties in t
he u
nderlyin
g m
ark
et;
(c)
req
uire a
pers
on t
o t
erm
inate
or
reduce a
positio
n,
on a
te
mpora
ry o
r perm
anent basis
as the s
pecific
case m
ay r
eq
uire
and t
o u
nila
tera
lly t
ake a
ppro
priate
action t
o e
nsure
the
term
ination o
r re
duction if th
e p
ers
on d
oes n
ot
com
ply
; and
(d)
where
appro
priate
, re
quire a
pers
on to p
rovid
e liq
uid
ity
back into
the m
ark
et
at
an a
gre
ed p
rice a
nd v
olu
me o
n a
te
mpora
ry b
asis
with t
he e
xpre
ss inte
nt of m
itig
ating t
he e
ffects
of
a larg
e o
r dom
inant positio
n.
Para
gra
ph 1
(12)
of
Schedule
3
insert
ing p
ara
gra
ph 7
BA
of
the
RR
R (
S)
HM
T
Art
icle
57(9
) of
MiF
ID I
I T
he p
ositio
n lim
its a
nd p
ositio
n m
anag
em
ent contr
ols
shall
be
transpare
nt and n
on-d
iscrim
inato
ry, specifyin
g h
ow
they a
pply
to
pers
ons a
nd takin
g a
ccount
of th
e n
atu
re a
nd c
om
positio
n o
f m
ark
et
part
icip
ants
and o
f th
e u
se t
hey m
ake o
f th
e c
ontr
acts
subm
itte
d to tra
din
g.
Reg
ula
tion 2
3
Para
gra
ph 1
(12)
of
Schedule
3
insert
ing p
ara
gra
ph 7
BA
of
the
RR
R (
S)
HM
T
Art
icle
57(1
0)
of
MiF
ID I
I T
he investm
ent firm
or
mark
et opera
tor
opera
ting
the tra
din
g
venue s
hall
info
rm t
he c
om
pete
nt
auth
ority
of
the d
eta
ils o
f positio
n m
anag
em
ent contr
ols
.
Reg
ula
tion 2
4
Para
gra
ph 1
(12)
of
Schedule
3
insert
ing p
ara
gra
ph 7
BA
of
the
RR
R (
S)
HM
T
45
AR
TIC
LE
T
EX
T
TR
AN
SP
OS
ITIO
N I
N F
INA
NC
IAL
S
ER
VIC
ES
AN
D M
AR
KE
TS
AC
T
2000 (
MA
RK
ET
S I
N F
INA
NC
IAL
IN
ST
RU
ME
NT
S)
RE
GU
LA
TIO
NS
2017
RE
SP
ON
SIB
LE
B
OD
Y
The c
om
pete
nt auth
ority
shall
com
munic
ate
the s
am
e
info
rmation a
s w
ell
as t
he d
eta
ils o
f th
e p
ositio
n lim
its it
has
esta
blis
hed t
o E
SM
A,
wh
ich s
hall
publis
h a
nd m
ain
tain
on its
w
ebsite a
data
base w
ith s
um
maries o
f th
e p
ositio
n lim
its a
nd
positio
n m
anag
em
ent contr
ols
.
Art
icle
57(1
1)
of
MiF
ID I
I T
he p
ositio
n lim
its o
f para
gra
ph 1
shall
be im
posed b
y
com
pete
nt
auth
orities p
urs
uant to
poin
t (p
) of
Art
icle
69(2
)
Reg
ula
tion 2
8
HM
T
Art
icle
57(1
3)
of
MiF
ID I
I C
om
pete
nt
auth
orities s
hall
not
impose l
imits w
hic
h a
re m
ore
re
str
ictive than those a
dopte
d p
urs
uant to
para
gra
ph 1
except in
exceptional
cases
where
th
ey
are
obje
ctively
ju
stified
and
pro
port
ionate
ta
kin
g in
to account
the liq
uid
ity of
the specific
m
ark
et
and t
he o
rderly f
unctionin
g o
f th
at
mark
et. C
om
pete
nt
auth
orities s
hall
publis
h o
n t
heir w
ebsite t
he d
eta
ils o
f th
e m
ore
re
str
ictive p
ositio
n l
imits t
hey d
ecid
e t
o i
mpose,
wh
ich s
hall
be
valid
for
an in
itia
l period n
ot exceedin
g s
ix m
onth
s fro
m the d
ate
of
their p
ublic
ation o
n t
he w
ebsite. T
he m
ore
restr
ictive p
ositio
n
limits m
ay be r
enew
ed fo
r fu
rther
periods not
exceedin
g six
m
onth
s a
t a t
ime if
the g
rounds f
or
the r
estr
iction c
ontinue to b
e
applic
able
. If
not re
new
ed a
fter
that six
-month
period, th
ey s
hall
auto
matically
exp
ire.
Where
com
pete
nt
auth
orities d
ecid
e t
o im
pose m
ore
restr
ictive
positio
n lim
its,
they shall
notify
E
SM
A.
The notification shall
inclu
de a ju
stification fo
r th
e m
ore
re
str
ictive positio
n lim
its.
ES
MA
shall,
within
24 h
ours
, is
sue a
n o
pin
ion o
n w
heth
er
it
consid
ers
that
the m
ore
restr
ictive p
ositio
n lim
its a
re n
ecessary
to
addre
ss the e
xceptional case. T
he o
pin
ion s
hall
be p
ublis
hed
on E
SM
A’s
website.
Reg
ula
tion 2
5
HM
T
46
AR
TIC
LE
T
EX
T
TR
AN
SP
OS
ITIO
N I
N F
INA
NC
IAL
S
ER
VIC
ES
AN
D M
AR
KE
TS
AC
T
2000 (
MA
RK
ET
S I
N F
INA
NC
IAL
IN
ST
RU
ME
NT
S)
RE
GU
LA
TIO
NS
2017
RE
SP
ON
SIB
LE
B
OD
Y
Where
a com
pete
nt
auth
ority
im
poses lim
its contr
ary
to
an
ES
MA
opin
ion,
it shall
imm
edia
tely
publis
h on its w
ebsite a
notice f
ully
expla
inin
g its
reasons for
doin
g s
o.
Art
icle
58(1
) and (
4)
(part
) of
MiF
ID I
I
Positio
n r
eport
ing
by c
ate
gories o
f positio
n h
old
ers
1.
Mem
ber
Sta
tes shall
ensure
that
an in
vestm
ent
firm
or
a
mark
et
opera
tor
opera
ting
a
tradin
g
venue
wh
ich
trades
com
modity derivatives or
em
issio
n allo
wances or
derivatives
there
of:
(a)
make p
ublic
a w
eekly
report
with t
he a
gg
regate
positio
ns
held
by th
e diffe
rent
cate
gories of
pers
ons fo
r th
e diffe
rent
com
modity derivatives or
em
issio
n allo
wances or
derivatives
there
of
traded o
n t
heir t
radin
g v
enue,
specifyin
g t
he n
um
ber
of
long a
nd s
hort
positio
ns b
y s
uch c
ate
gories,
chang
es t
here
to
sin
ce th
e pre
vio
us re
port
, th
e perc
enta
ge of
the to
tal
open
inte
rest
repre
sente
d
by
each
cate
gory
and
the
num
ber
of
pers
ons h
old
ing
a p
ositio
n in e
ach c
ate
gory
in a
ccord
ance w
ith
para
gra
ph 4 and com
munic
ate
th
at
report
to
th
e com
pete
nt
auth
ority
and t
o E
SM
A;
ES
MA
shall
pro
ceed t
o a
centr
alis
ed
public
ation o
f th
e info
rmation inclu
ded in t
hose r
eport
s;
Para
gra
ph 1
(12)
of
Schedule
3
insert
ing p
ara
gra
ph 7
BB
of
the
RR
R (
S)
HM
T
47
AR
TIC
LE
T
EX
T
TR
AN
SP
OS
ITIO
N I
N F
INA
NC
IAL
S
ER
VIC
ES
AN
D M
AR
KE
TS
AC
T
2000 (
MA
RK
ET
S I
N F
INA
NC
IAL
IN
ST
RU
ME
NT
S)
RE
GU
LA
TIO
NS
2017
RE
SP
ON
SIB
LE
B
OD
Y
(b)
pro
vid
e t
he c
om
pete
nt
auth
ority
with a
com
ple
te b
reakdow
n
of
the p
ositio
ns h
eld
by a
ll pers
ons,
inclu
din
g t
he m
em
bers
or
part
icip
ants
and t
he c
lients
there
of, o
n t
hat
tradin
g v
enue,
at
least
on a
daily
basis
.
The o
blig
ation laid
dow
n in p
oin
t (a
) shall
only
apply
when b
oth
th
e
num
ber
of
pers
ons
and
their
open
positio
ns
exceed
m
inim
um
thre
shold
s.
……
…..
4.
Pers
ons
hold
ing
positio
ns
in
a
com
modity
derivative
or
em
issio
n a
llow
ance o
r derivative t
here
of
shall
be c
lassifie
d b
y
the i
nvestm
ent
firm
or
mark
et
opera
tor
opera
ting
that
tradin
g
venue a
ccord
ing t
o t
he n
atu
re o
f th
eir m
ain
busin
ess,
takin
g
account
of any a
pplic
able
auth
orisation, as e
ither:
(a
) in
vestm
ent firm
s o
r cre
dit institu
tions;
(b)
investm
ent
funds,
either
an
undert
akin
g
for
colle
ctive
investm
ents
in
tr
ansfe
rable
securities (U
CIT
S)
as defined in
D
irective
2009/6
5/E
C,
or
an
altern
ative
investm
ent
fund
manag
er
as d
efined in D
irective 2
011/6
1/E
C;
(c)
oth
er
financia
l in
stitu
tions,
inclu
din
g insura
nce u
ndert
akin
gs
and
rein
sura
nce
undert
akin
gs
as
defined
in
Directive
2009/1
38/E
C,
and
institu
tions
for
occupational
retire
ment
pro
vis
ion a
s d
efined in D
irective 2
003/4
1/E
C;
(d)
com
merc
ial undert
akin
gs;
(e)
in t
he c
ase o
f em
issio
n a
llow
ances o
r deriva
tives t
here
of,
opera
tors
w
ith
com
plia
nce
oblig
ations
under
Directive
2003/8
7/E
C.
48
AR
TIC
LE
T
EX
T
TR
AN
SP
OS
ITIO
N I
N F
INA
NC
IAL
S
ER
VIC
ES
AN
D M
AR
KE
TS
AC
T
2000 (
MA
RK
ET
S I
N F
INA
NC
IAL
IN
ST
RU
ME
NT
S)
RE
GU
LA
TIO
NS
2017
RE
SP
ON
SIB
LE
B
OD
Y
The r
eport
s r
efe
rred t
o in p
oin
t (a
) of
para
gra
ph 1
shall
specify
the n
um
ber
of
long
and s
hort
positio
ns b
y c
ate
gory
of
pers
ons,
any c
hang
es t
here
to s
ince t
he p
revio
us r
eport
, perc
ent
of
tota
l open inte
rest re
pre
sente
d b
y e
ach c
ate
gory
, and the n
um
ber
of
pers
ons in e
ach c
ate
gory
.
The re
port
s re
ferr
ed to
in
poin
t (a
) of
para
gra
ph 1 and th
e
bre
akdow
ns
refe
rred
to
in
para
gra
ph
2
shall
diffe
rentiate
betw
een:
(a
) positio
ns
identified
as
positio
ns
whic
h
in
an
obje
ctively
m
easura
ble
w
ay re
duce risks directly re
lating
to
com
merc
ial
activitie
s;
and
(b)
oth
er
positio
ns.
Art
icle
59(2
) (p
art
) of
MiF
ID I
I
By w
ay o
f dero
gation f
rom
para
gra
ph 1
, M
em
ber
Sta
tes s
hall
allo
w a
n in
vestm
ent f
irm
or a m
ark
et opera
tor opera
ting a
tra
din
g
venue t
o o
pera
te t
he d
ata
report
ing s
erv
ices o
f an A
PA
, a C
TP
and a
n A
RM
, subje
ct to
the p
rior
verification o
f th
eir c
om
plia
nce
with
this
T
itle
. S
uch
a
serv
ice
shall
be
inclu
ded
in
their
auth
orisation.
Para
gra
ph 1
(17)
of
Schedule
3
insert
ing p
ara
gra
ph 9
I of th
e R
RR
(S
)
HM
T
Art
icle
67(1
) of
MiF
ID I
I E
ach M
em
ber
Sta
te s
hall
desig
nate
the c
om
pete
nt
auth
orities
wh
ich a
re t
o c
arr
y out
each o
f th
e d
uties p
rovid
ed f
or
under
the
diffe
rent
pro
vis
ions o
f R
eg
ula
tion (
EU
) N
o 6
00/2
014 a
nd o
f th
is
Directive.
Mem
ber
Sta
tes s
hall
info
rm t
he C
om
mis
sio
n,
ES
MA
and t
he c
om
pete
nt
auth
orities o
f oth
er
Mem
ber
Sta
tes o
f th
e
identity
of th
e c
om
pete
nt auth
orities responsib
le for enfo
rcem
ent
of
each o
f th
ose d
uties, and o
f any d
ivis
ion o
f th
ose d
uties.
Reg
ula
tion 3
(in
rela
tion to d
uties
under
Title
I to I
V a
nd V
I and V
II o
f M
iFID
II)
P
ara
gra
ph 3
and 4
of
Schedule
1
HM
T
Art
icle
68 o
f M
iFID
II
If
a
Mem
ber
Sta
te
desig
nate
s
more
th
an
one
com
pete
nt
auth
ority
to e
nfo
rce a
pro
vis
ion o
f th
is D
irective o
r of
Reg
ula
tion
(EU
) N
o 6
00/2
014, th
eir r
espective r
ole
s s
hall
be c
learly d
efined
and t
hey s
hall
coopera
te c
losely
.
Para
gra
ph 6
of
Schedule
1
HM
T
49
AR
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LE
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AN
SP
OS
ITIO
N I
N F
INA
NC
IAL
S
ER
VIC
ES
AN
D M
AR
KE
TS
AC
T
2000 (
MA
RK
ET
S I
N F
INA
NC
IAL
IN
ST
RU
ME
NT
S)
RE
GU
LA
TIO
NS
2017
RE
SP
ON
SIB
LE
B
OD
Y
Each M
em
ber
Sta
te s
hall
req
uire t
hat
such c
oopera
tion a
lso
take p
lace b
etw
een t
he c
om
pete
nt
auth
orities f
or
the p
urp
oses
of
this
Directive o
r of
Reg
ula
tion (
EU
) N
o 6
00/2
014 a
nd t
he
com
pete
nt
auth
orities r
esponsib
le in t
hat
Mem
ber
Sta
te f
or
the
superv
isio
n of
cre
dit and oth
er
financia
l in
stitu
tions,
pensio
n
funds,
UC
ITS
, in
sura
nce a
nd r
ein
sura
nce i
nte
rmedia
ries a
nd
insura
nce u
ndert
akin
gs.
Mem
ber
Sta
tes
shall
req
uire
that
com
pete
nt
auth
orities
exchang
e a
ny i
nfo
rmation w
hic
h i
s e
ssential
or
rele
vant
to t
he
exerc
ise o
f th
eir functions a
nd d
uties.
Art
icle
69(1
) and (
2)
of
MiF
ID I
I (e
xclu
din
g
part
s o
f para
gra
ph 1
and t
he
second s
ub-
para
gra
ph o
f para
gra
ph 2
)
1.
Com
pete
nt
auth
orities s
hall
be g
iven a
ll superv
isory
pow
ers
, in
clu
din
g investig
ato
ry p
ow
ers
and p
ow
ers
to im
pose
rem
edie
s, necessary
to fulfil
their d
uties u
nder
this
Directive
and u
nder
Reg
ula
tion (
EU
) N
o 6
00/2
014.
2. T
he p
ow
ers
refe
rred to in p
ara
gra
ph 1
shall
inclu
de,
at le
ast,
the follo
win
g p
ow
ers
to:
(a)
have a
ccess to a
ny d
ocum
ent or
oth
er
data
in a
ny f
orm
w
hic
h t
he c
om
pete
nt auth
ority
consid
ers
could
be r
ele
vant fo
r th
e p
erf
orm
ance o
f its d
uties a
nd r
eceiv
e o
r ta
ke a
copy o
f it;
(b)
req
uire o
r dem
and t
he p
rovis
ion o
f in
form
ation fro
m a
ny
pers
on a
nd if
necessary
to s
um
mon a
nd q
uestion a
pers
on
with a
vie
w t
o o
bta
inin
g info
rmation;
(c)
carr
y o
ut on-s
ite inspections o
r in
vestig
ations;
(d)
req
uire e
xis
ting
record
ing
s o
f te
lephone c
onvers
ations o
r ele
ctr
onic
com
munic
ations o
r oth
er
data
tra
ffic
record
s h
eld
by
an investm
ent firm
, a c
redit institu
tion,
or
any o
ther
entity
re
gula
ted b
y this
Directive o
r by R
eg
ula
tion (
EU
) N
o 6
00/2
014;
(e)
req
uire t
he fre
ezin
g o
r th
e s
eq
uestr
ation o
f assets
, or
both
;
Art
icle
69(2
)(a)
to (
d):
P
ara
gra
phs 8
and 1
9 o
f S
chedule
1
Para
gra
ph 6
(2)(
a)
and (
d)
of
Schedule
3
insert
ing
new
art
icle
2
(2)(
aa)
and (
8)(
aa)
in the Q
EP
O
Art
icle
69(2
)(e)
Para
gra
ph 2
1 o
f S
chedule
1
Para
gra
ph 6
(5)(
a)
of
Schedule
3
insert
ing n
ew
art
icle
5(2
)(aa)
in t
he
QE
PO
and a
mendin
g a
rtic
le 5
(2
)(a)
of art
icle
5 o
f th
e Q
EP
O.
Art
icle
69(2
)(f)
HM
T
50
AR
TIC
LE
T
EX
T
TR
AN
SP
OS
ITIO
N I
N F
INA
NC
IAL
S
ER
VIC
ES
AN
D M
AR
KE
TS
AC
T
2000 (
MA
RK
ET
S I
N F
INA
NC
IAL
IN
ST
RU
ME
NT
S)
RE
GU
LA
TIO
NS
2017
RE
SP
ON
SIB
LE
B
OD
Y
(f)
require the tem
pora
ry p
rohib
itio
n o
f pro
fessio
nal activity;
(g
) re
quire t
he a
uditors
of
auth
orised investm
ent firm
s,
reg
ula
ted m
ark
ets
and d
ata
report
ing s
erv
ices p
rovid
ers
to
pro
vid
e info
rmation;
(h)
refe
r m
att
ers
for
crim
inal pro
secution;
(i)
allo
w a
uditors
or
expert
s t
o c
arr
y o
ut verifications o
r in
vestig
ations;
(j)
req
uire o
r dem
and t
he p
rovis
ion o
f in
form
ation inclu
din
g a
ll re
levant
docum
enta
tion fro
m a
ny p
ers
on r
eg
ard
ing t
he s
ize
and p
urp
ose o
f a p
ositio
n o
r exposure
ente
red into
via
a
com
modity d
erivative,
and a
ny a
ssets
or
liabili
ties in t
he
underlyin
g m
ark
et;
(k)
req
uire t
he t
em
pora
ry o
r perm
anent cessation o
f any
pra
ctice o
r conduct th
at th
e c
om
pete
nt auth
ority
consid
ers
to
be c
ontr
ary
to the p
rovis
ions o
f R
eg
ula
tion (
EU
) N
o 6
00/2
014
and t
he p
rovis
ions a
dopte
d in t
he im
ple
menta
tion o
f th
is
Directive a
nd p
revent re
petition o
f th
at pra
ctice o
r conduct;
(l)
adopt
any t
ype o
f m
easure
to e
nsure
that
investm
ent firm
s,
reg
ula
ted m
ark
ets
and o
ther
pers
ons to w
hom
this
Directive o
r R
eg
ula
tion (
EU
) N
o 6
00/2
014 a
pplie
s,
continue to c
om
ply
with
leg
al re
quirem
ents
;
(m)
req
uire the s
uspensio
n o
f tr
adin
g in a
fin
ancia
l in
str
um
ent;
(n)
req
uire t
he r
em
oval of
a f
inancia
l in
str
um
ent fr
om
tra
din
g,
wheth
er
on a
reg
ula
ted m
ark
et
or
under
oth
er
tradin
g
arr
ang
em
ents
;
(o)
req
uest
any p
ers
on to t
ake s
teps to r
educe t
he s
ize o
f th
e
positio
n o
r exposure
;
(p)
limit the a
bili
ty o
f any p
ers
on fro
m e
nte
ring into
a
com
modity d
erivative,
inclu
din
g b
y intr
oducin
g lim
its o
n the
Para
gra
ph 6
(4)(
b)
of
Schedule
3
insert
ing n
ew
art
icle
4(5
)(aa)
in t
he
QE
PO
A
rtic
le 6
9(2
)(h)
Para
gra
phs 1
6, 19, 20 a
nd 2
3 o
f S
chedule
1.
Art
icle
69(2
)(j)
Para
gra
ph 1
9 o
f S
chedule
1 a
nd
para
gra
ph 6
(2)(
a)
of
Schedule
3
insert
ing p
ara
gra
ph (
2)(
aa)
of
art
icle
2 o
f th
e Q
EP
O.
Art
icle
69(2
)(k)
Para
gra
ph 6
(5)(
a)
of
Schedule
3
insert
ing n
ew
art
icle
5(2
)(aa)
in t
he
QE
PO
and a
mendin
g a
rtic
le 5
(2
)(a)
of art
icle
5 o
f th
e Q
EP
O.
Art
icle
69(2
)( (
o):
R
eg
ula
tion 2
5
Art
icle
69(2
) (q
)
51
AR
TIC
LE
T
EX
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AN
SP
OS
ITIO
N I
N F
INA
NC
IAL
S
ER
VIC
ES
AN
D M
AR
KE
TS
AC
T
2000 (
MA
RK
ET
S I
N F
INA
NC
IAL
IN
ST
RU
ME
NT
S)
RE
GU
LA
TIO
NS
2017
RE
SP
ON
SIB
LE
B
OD
Y
siz
e o
f a p
ositio
n a
ny p
ers
on c
an h
old
at all
tim
es in
accord
ance w
ith A
rtic
le 5
7 o
f th
is D
irective;
(q)
issue p
ublic
notices;
(r)
req
uire, in
so f
ar
as p
erm
itte
d b
y n
ational la
w,
exis
ting
data
tr
aff
ic r
ecord
s h
eld
by a
tele
com
munic
ation o
pera
tor,
where
th
ere
is a
reasonable
suspic
ion o
f an infr
ing
em
ent
and w
here
such r
ecord
s m
ay b
e r
ele
vant
to a
n investig
ation into
in
frin
gem
ents
of th
is D
irective o
r of
Reg
ula
tion (
EU
) N
o
600/2
014;
(s)
suspend t
he m
ark
eting o
r sale
of financia
l in
str
um
ents
or
str
uctu
red d
eposits w
here
the c
onditio
ns o
f A
rtic
les 4
0, 41 o
r 42 o
f R
eg
ula
tion (
EU
) N
o 6
00/2
014 a
re m
et;
(t)
suspend t
he m
ark
eting o
r sale
of financia
l in
str
um
ents
or
str
uctu
red d
eposits w
here
the investm
ent firm
has n
ot
develo
ped o
r applie
d a
n e
ffective p
roduct appro
val pro
cess o
r oth
erw
ise f
aile
d t
o c
om
ply
with A
rtic
le 1
6(3
) of
this
Directive;
(u)
req
uire t
he r
em
oval of
a n
atu
ral pers
on fro
m the
manag
em
ent
board
of
an investm
ent firm
or
mark
et
opera
tor.
…
….
Mem
ber
Sta
tes s
hall
ensure
that
mechanis
ms a
re i
n p
lace t
o
ensure
that com
pensation m
ay b
e p
aid
or
oth
er
rem
edia
l action
be t
aken i
n a
ccord
ance w
ith n
ational
law
for
any f
inancia
l lo
ss
or
dam
ag
e
suffere
d
as
a
result
of
an
infr
ingem
ent
of
this
D
irective o
r of
Reg
ula
tion (
EU
) N
o 6
00/2
014.
Para
gra
phs 2
2 a
nd 2
9 o
f S
chedule
1.
Para
gra
ph 6
(4)(
b)
and (
c)
of
Schedule
3 insert
ing n
ew
Art
icle
4(5
)(aa)
and (
7)(
aa)
in t
he Q
EP
O.
Art
icle
69(2
)(r)
P
ara
gra
ph 1
9 o
f S
chedule
1
Para
gra
ph 6
(2)(
a)
of
Schedule
3
insert
ing p
ara
gra
ph (
2)(
aa)
of
art
icle
2 o
f th
e Q
EP
O.
Art
icle
69(2
)(u)
Part
5
Art
icle
69(2
) F
inal para
gra
ph
Para
gra
ph 2
1 o
f S
chedule
1
Para
gra
ph 6
(5)(
a)
and (
b)
of
Schedule
3 insert
ing n
ew
art
icle
5(2
)(aa)
in t
he Q
EP
O a
nd
am
endin
g a
rtic
le 5
(2)(
a)
of
the
QE
PO
52
AR
TIC
LE
T
EX
T
TR
AN
SP
OS
ITIO
N I
N F
INA
NC
IAL
S
ER
VIC
ES
AN
D M
AR
KE
TS
AC
T
2000 (
MA
RK
ET
S I
N F
INA
NC
IAL
IN
ST
RU
ME
NT
S)
RE
GU
LA
TIO
NS
2017
RE
SP
ON
SIB
LE
B
OD
Y
See a
lso p
ara
gra
phs 2
and 5
of
Schedule
1
Art
70(1
) (e
xclu
din
g
third s
ub-
para
gra
ph)
and (
3)
(part
)
Sanctions f
or
infr
ing
em
ents
1.
Without
pre
judic
e
to
the
superv
isory
pow
ers
in
clu
din
g
investig
ato
ry
pow
ers
and
pow
ers
to
im
pose
rem
edie
s
of
com
pete
nt auth
orities in
accord
ance w
ith A
rtic
le 6
9 a
nd the r
ight
for
Mem
ber
Sta
tes to p
rovid
e for
and im
pose c
rim
inal s
anctions,
Mem
ber
Sta
tes s
hall
lay d
ow
n r
ule
s o
n a
nd e
nsure
that
their
com
pete
nt auth
orities m
ay im
pose a
dm
inis
trative s
anctions a
nd
measure
s a
pplic
able
to a
ll in
frin
gem
ents
of
this
Directive o
r of
Reg
ula
tion
(EU
) N
o
600/2
014
and
the
national
pro
vis
ions
adopte
d in
the im
ple
menta
tion o
f th
is D
irective a
nd o
f R
eg
ula
tion
(EU
) N
o 6
00/2
014,
and s
hall
take a
ll m
easure
s n
ecessary
to
ensure
th
at
they
are
im
ple
mente
d.
Such
sanctions
and
measure
s s
hall
be e
ffective,
pro
port
ionate
and d
issuasiv
e a
nd
shall
apply
to in
frin
gem
ents
even w
here
they a
re n
ot specific
ally
re
ferr
ed t
o in p
ara
gra
phs 3
, 4 a
nd 5
. M
em
ber
Sta
tes
may
decid
e
not
to
lay
dow
n
rule
s
for
adm
inis
trative s
anctions f
or
infr
ing
em
ents
whic
h a
re s
ubje
ct
to
crim
inal s
anctions u
nder th
eir n
ational l
aw
. In
that case, M
em
ber
Sta
tes
shall
com
munic
ate
to
th
e
Com
mis
sio
n
the
rele
vant
crim
inal la
w p
rovis
ions.
…
……
…..
3.
Mem
ber
Sta
tes s
hall
ensure
that
at
least
an i
nfr
ing
em
ent
of
the f
ollo
win
g p
rovis
ions o
f th
is D
irective o
r of
Reg
ula
tion (
EU
)
Para
gra
phs 1
0, 11 a
nd 2
1 o
f S
chedule
1
HM
T
53
AR
TIC
LE
T
EX
T
TR
AN
SP
OS
ITIO
N I
N F
INA
NC
IAL
S
ER
VIC
ES
AN
D M
AR
KE
TS
AC
T
2000 (
MA
RK
ET
S I
N F
INA
NC
IAL
IN
ST
RU
ME
NT
S)
RE
GU
LA
TIO
NS
2017
RE
SP
ON
SIB
LE
B
OD
Y
No.
600/2
014
shall
be re
gard
ed
as
an
infr
ing
em
ent
of
this
D
irective o
r of
Reg
ula
tion (
EU
) N
o. 600/2
014:
(a)
with r
egard
to t
his
Directive:
(i)
poin
t (b
) of
Art
icle
8;
(ii) A
rtic
le 9
(1)
to (
6);
(iii)
Art
icle
11(1
) and (
3);
(iv)
Art
icle
16(1
) to
(11);
(v
) A
rtic
le 1
7(1
) to
(6);
(v
i) A
rtic
le 1
8(1
) to
(9)
and t
he f
irst sente
nce o
f A
rtic
le 1
8(1
0);
(v
ii) A
rtic
les 1
9 a
nd 2
0;
(viii
) A
rtic
le 2
1(1
);
(ix)
Art
icle
23(1
), (
2)
and (
3);
(x
) A
rtic
le 2
4(1
) to
(5)
and (
7)
to (
10)
and t
he f
irst
and s
econd
subpara
gra
phs o
f A
rtic
le 2
4(1
1);
(x
i) A
rtic
le 2
5(1
) to
(6);
(x
ii) t
he s
econd s
ente
nce o
f A
rtic
le 2
6(1
) and A
rtic
le 2
6(2
) and
(3);
(x
iii)
Art
icle
27(1
) to
(8);
(x
iv)
Art
icle
28(1
) and (
2);
(x
v)
the
firs
t subpara
gra
ph
of
Art
icle
29(2
),
the
third
subpara
gra
ph o
f A
rtic
le 2
9(2
), the first sente
nce o
f A
rtic
le 2
9(3
),
the f
irst subpara
gra
ph o
f A
rtic
le 2
9(4
), a
nd A
rtic
le 2
9(5
);
(xvi) the s
econd s
ubpara
gra
ph o
f A
rtic
le 3
0(1
), the first sente
nce
of
the s
econd s
ubpara
gra
ph o
f A
rtic
le 3
0(3
);
(xvii)
Art
icle
31(1
), t
he f
irst
subpara
gra
ph o
f A
rtic
le 3
1(2
) and
Art
icle
31(3
);
(xviii
) A
rtic
le 3
2(1
), t
he f
irst, s
econd a
nd f
ourt
h s
ubpara
gra
phs
of
Art
icle
32(2
);
(xix
) A
rtic
le 3
3(3
);
54
AR
TIC
LE
T
EX
T
TR
AN
SP
OS
ITIO
N I
N F
INA
NC
IAL
S
ER
VIC
ES
AN
D M
AR
KE
TS
AC
T
2000 (
MA
RK
ET
S I
N F
INA
NC
IAL
IN
ST
RU
ME
NT
S)
RE
GU
LA
TIO
NS
2017
RE
SP
ON
SIB
LE
B
OD
Y
(xx)
Art
icle
34(2
), t
he f
irst
sente
nce o
f A
rtic
le 3
4(4
), t
he f
irst
sente
nce o
f A
rtic
le 3
4(5
), t
he f
irst sente
nce o
f A
rtic
le 3
4(7
);
(xxi) A
rtic
le 3
5(2
), the first subpara
gra
ph o
f A
rtic
le 3
5(7
), the first
sente
nce o
f A
rtic
le 3
5(1
0);
(x
xii)
Art
icle
36(1
);
(xxiii
) th
e first subpara
gra
ph a
nd the first sente
nce o
f th
e s
econd
subpara
gra
ph of
Art
icle
37(1
), and th
e firs
t subpara
gra
ph of
Art
icle
37(2
);
(xxiv
) th
e fourt
h s
ubpara
gra
ph o
f A
rtic
le 4
4(1
), the first sente
nce
of
Art
icle
44(2
), t
he f
irst
subpara
gra
ph o
f A
rtic
le 4
4(3
) and p
oin
t (b
) of
Art
icle
44(5
);
(xxv)
Art
icle
45(1
) to
(6)
and (
8);
(x
xvi) A
rtic
le 4
6(1
), p
oin
ts (
a)
and (
b)
of
Art
icle
46(2
);
(xxvii)
Art
icle
47;
(xxviii
) A
rtic
le 4
8(1
) to
(11);
(x
xix
) A
rtic
le 4
9(1
);
(xxx)
Art
icle
50(1
);
(xxxi) A
rtic
le 5
1(1
) to
(4)
and t
he s
econd s
ente
nce o
f A
rtic
le
51(5
);
(xxxii)
Art
icle
52(1
), t
he f
irst, s
econd a
nd f
ifth
subpara
gra
phs o
f A
rtic
le 5
2(2
);
(xxxiii
) A
rtic
le 5
3(1
), (
2)
and (
3)
and t
he f
irst
sente
nce o
f th
e
second s
ubpara
gra
ph o
f A
rtic
le 5
3(6
), A
rtic
le 5
3(7
);
(xxxiv
) A
rtic
le 5
4(1
), t
he f
irst
subpara
gra
ph o
f A
rtic
le 5
4(2
) and
Art
icle
54(3
);
(xxxv)
Art
icle
57(1
) and
(2),
A
rtic
le
57(8
) and
the
firs
t subpara
gra
ph o
f A
rtic
le 5
7(1
0);
(x
xxvi) A
rtic
le 5
8(1
) to
(4);
(x
xxvii)
Art
icle
63(1
), (
3)
and (
4);
(x
xxviii
) A
rtic
le 6
4(1
) to
(5);
55
AR
TIC
LE
T
EX
T
TR
AN
SP
OS
ITIO
N I
N F
INA
NC
IAL
S
ER
VIC
ES
AN
D M
AR
KE
TS
AC
T
2000 (
MA
RK
ET
S I
N F
INA
NC
IAL
IN
ST
RU
ME
NT
S)
RE
GU
LA
TIO
NS
2017
RE
SP
ON
SIB
LE
B
OD
Y
(xxxix
) A
rtic
le 6
5(1
) to
(5);
(x
xxx)
Art
icle
66(1
) to
(4);
and
(b)
with r
egard
to R
eg
ula
tion (
EU
) N
o 6
00/2
014:
(i)
Art
icle
s 3
(1)
and (
3);
(ii) t
he f
irst subpara
gra
ph o
f A
rtic
le 4
(3);
(iii)
Art
icle
6;
(iv)
the first
sente
nce o
f th
ird s
ubpara
gra
ph o
f A
rtic
le 7
(1);
(v
) A
rtic
le 8
(1),
(3)
and, (4
);
(vi) A
rtic
le 1
0;
(vii)
the f
irst sente
nce o
f th
ird s
ubpara
gra
ph o
f A
rtic
le 1
1(1
) and
the third s
ubpara
gra
ph o
f A
rtic
le 1
1(3
);
(viii
) A
rtic
le 1
2(1
);
(ix)
Art
icle
13(1
);
(x)
Art
icle
14(1
), th
e firs
t sente
nce of
Art
icle
14(2
) and th
e
second, th
ird a
nd fourt
h s
ente
nce o
f A
rtic
le 1
4(3
);
(xi) t
he f
irst
subpara
gra
ph a
nd t
he f
irst
and t
hird s
ente
nces o
f second subpara
gra
ph of
Art
icle
15(1
), A
rtic
le 15(2
) and th
e
second s
ente
nce o
f A
rtic
le 1
5(4
);
(xii)
the s
econd s
ente
nce o
f A
rtic
le 1
7(1
);
(xiii
) A
rtic
le 1
8(1
) and (
2),
first
sente
nce o
f A
rtic
le 1
8(4
), f
irst
sente
nce o
f A
rtic
le 1
8(5
), the first subpara
gra
ph o
f A
rtic
le 1
8(6
),
Art
icle
18(8
) and (
9);
(x
iv)
Art
icle
20(1
) and the f
irst sente
nce o
f A
rtic
le 2
0(2
);
(xv)
Art
icle
21(1
), (
2)
and (
3);
(x
vi) A
rtic
le 2
2(2
);
(xvii)
Art
icle
23(1
) and (
2);
(x
viii
) A
rtic
le 2
5(1
) and (
2);
56
AR
TIC
LE
T
EX
T
TR
AN
SP
OS
ITIO
N I
N F
INA
NC
IAL
S
ER
VIC
ES
AN
D M
AR
KE
TS
AC
T
2000 (
MA
RK
ET
S I
N F
INA
NC
IAL
IN
ST
RU
ME
NT
S)
RE
GU
LA
TIO
NS
2017
RE
SP
ON
SIB
LE
B
OD
Y
(xix
) th
e f
irst
subpara
gra
ph o
f A
rtic
le 2
6(1
), A
rtic
le 2
6(2
) to
(5),
th
e first subpara
gra
ph o
f A
rtic
le 2
6(6
), the first to
fifth
and e
ighth
subpara
gra
ph o
f A
rtic
le 2
6(7
);
(xx)
Art
icle
27(1
);
(xxi) A
rtic
le 2
8(1
) and the f
irst subpara
gra
ph o
f A
rtic
le 2
8(2
);
(xxii)
Art
icle
29(1
) and (
2);
(x
xiii
) A
rtic
le 3
0(1
);
(xxiv
) A
rtic
le 3
1(2
) and (
3);
(x
xv)
Art
icle
35(1
), (
2)
and (
3);
(x
xvi) A
rtic
le 3
6(1
), (
2)
and (
3);
(x
xvii)
Art
icle
37(1
) and (
3);
(x
xviii
) A
rtic
les 4
0, 41 a
nd 4
2.
Art
70(2
) of
MIF
ID 2
M
em
ber
Sta
tes shall
ensure
th
at
where
oblig
ations apply
to
in
vestm
ent
firm
s,
mark
et
opera
tors
, data
re
port
ing
serv
ices
pro
vid
ers
, cre
dit institu
tions in r
ela
tion to investm
ent serv
ices o
r in
vestm
ent
activitie
s and ancill
ary
serv
ices,
and bra
nches of
third-c
ountr
y firm
s in the c
ase o
f an infr
ing
em
ent, s
anctions a
nd
measure
s c
an b
e a
pplie
d,
subje
ct to
the c
onditio
ns laid
dow
n in
national
law
in a
reas n
ot
harm
onis
ed b
y t
his
Directive,
to t
he
mem
bers
of
the
investm
ent
firm
s’
and
mark
et
opera
tors
’ m
anag
em
ent body, and a
ny o
ther
natu
ral or
leg
al pers
ons w
ho,
under
national la
w,
are
responsib
le f
or
an infr
ingem
ent.
Para
gra
phs 1
0 a
nd 1
1 o
f S
chedule
1
Para
gra
ph 6
(2)(
a)
and (
c)
of
Schedule
3 insert
ing n
ew
art
icle
(2
)(aa)
and (
6)(
aa)
in t
he Q
EP
O .
HM
T
Art
icle
70(5
) of
MIF
ID 2
F
ailu
re t
o c
oopera
te o
r com
ply
in a
n i
nvestig
ation o
r w
ith a
n
inspection
or
req
uest
covere
d
by
Art
icle
69
shall
als
o
be
re
gard
ed a
s a
n infr
ing
em
ent
of th
is D
irective.
Para
gra
ph 1
9 o
f S
chedule
1
Para
gra
ph 6
(2)(
a)
of
Schedule
3
insert
ing n
ew
art
icle
2(a
a)
in the
QE
PO
r.
HM
T
Art
icle
70(6
) of
MiF
ID I
I In
the c
ases o
f in
frin
gem
ents
refe
rred to in p
ara
gra
phs 3
, 4 a
nd
5,
Mem
ber
Sta
tes s
hall,
in c
onfo
rmity w
ith n
ational la
w,
pro
vid
e
See b
elo
w
HM
T
57
AR
TIC
LE
T
EX
T
TR
AN
SP
OS
ITIO
N I
N F
INA
NC
IAL
S
ER
VIC
ES
AN
D M
AR
KE
TS
AC
T
2000 (
MA
RK
ET
S I
N F
INA
NC
IAL
IN
ST
RU
ME
NT
S)
RE
GU
LA
TIO
NS
2017
RE
SP
ON
SIB
LE
B
OD
Y
that
com
pete
nt
auth
orities h
ave t
he p
ow
er
to t
ake a
nd i
mpose
at
least th
e follo
win
g a
dm
inis
trative s
anctions a
nd m
easure
s:
(a)
a p
ublic
sta
tem
ent, w
hic
h i
ndic
ate
s t
he n
atu
ral
or
leg
al
pers
on
and the n
atu
re o
f th
e in
frin
gem
ent in
accord
ance w
ith A
rtic
le 7
1;
Para
gra
ph 1
0 o
f S
chedule
1
Para
gra
ph 6
(3)(
a)
of
Schedule
3
insert
ing n
ew
art
icle
3(2
)(aa)
in t
he
QE
PO
and a
mendin
g a
rtic
le 3
(3)(
a)
of
the Q
EP
O.
Para
gra
ph 6
(4)(
b)
and (
c)
of
Schedule
3 insert
ing n
ew
art
icle
4((
5)(
aa)
and (
7)(
aa)
in the Q
EP
O
HM
T
(b)
an ord
er
req
uirin
g th
e natu
ral
or
leg
al
pers
on to
cease th
e
conduct
and to d
esis
t fr
om
a r
epetition o
f th
at conduct;
Para
gra
ph 2
1 o
f S
chedule
1
Para
gra
ph 6
(2)(
a)
and (
c)
of
Schedule
3 insert
ing a
new
art
icle
2(2
)(aa)
and (
6)(
aa)
in t
he Q
EP
O..
HM
T
(c)
in t
he c
ase o
f an investm
ent
firm
, a m
ark
et
opera
tor
auth
orised
to o
pera
te a
n M
TF
or
OT
F,
a r
eg
ula
ted m
ark
et, a
n A
PA
, a C
TP
and a
n A
RM
, w
ithdra
wal
or
suspensio
n o
f th
e a
uth
orisation o
f th
e institu
tion in a
ccord
ance w
ith A
rtic
les 8
, 43 a
nd 6
5;
Para
gra
ph 6
(3)(
a)
and (
b)
of
Schedule
3 insert
ing n
ew
art
icle
3
(2)(
aa)
in t
he Q
EP
O a
nd a
mendin
g
art
icle
3(3
)(a)
of th
e Q
EP
O
Para
gra
ph 6
(4)(
a)
of
Schedule
3
insert
ing n
ew
art
icle
4(3
)(aa)
in t
he
QE
PO
.
(f)
to (
h)
(f)
in t
he c
ase o
f a leg
al pers
on,
maxim
um
adm
inis
trative f
ines
of
at
least
EU
R 5
000 0
00,
or
in t
he M
em
ber
Sta
tes w
hose
curr
ency is
not th
e e
uro
, th
e c
orr
espondin
g v
alu
e in the n
ational
curr
ency o
n 2
July
2014,
or
of
up t
o 1
0 %
of
the t
ota
l annual
Para
gra
ph 1
1 o
f S
chedule
1
Para
gra
ph 6
(3)(
a)
of
Schedule
3
insert
ing n
ew
art
icle
3 (
2)(
aa)
in the
HM
T
58
AR
TIC
LE
T
EX
T
TR
AN
SP
OS
ITIO
N I
N F
INA
NC
IAL
S
ER
VIC
ES
AN
D M
AR
KE
TS
AC
T
2000 (
MA
RK
ET
S I
N F
INA
NC
IAL
IN
ST
RU
ME
NT
S)
RE
GU
LA
TIO
NS
2017
RE
SP
ON
SIB
LE
B
OD
Y
turn
over
of
the le
gal
pers
on accord
ing to
th
e la
st
availa
ble
accounts
appro
ved b
y t
he m
anag
em
ent
body;
where
the l
eg
al
pers
on i
s a
pare
nt
undert
akin
g o
r a s
ubsid
iary
of
the p
are
nt
undert
akin
g
whic
h
has
to
pre
pare
consolid
ate
d
financia
l accounts
in a
ccord
ance w
ith D
irective 2
013/3
4/E
U, th
e r
ele
vant
tota
l annual
turn
over
shall
be t
he t
ota
l annual
turn
over
or
the
corr
espondin
g t
ype o
f in
com
e i
n a
ccord
ance w
ith t
he r
ele
vant
accounting
le
gis
lative
acts
accord
ing
to
th
e
last
availa
ble
consolid
ate
d a
ccounts
appro
ved b
y t
he m
anag
em
ent
body o
f th
e u
ltim
ate
pare
nt
undert
akin
g;
(g) in
the c
ase o
f a n
atu
ral p
ers
on, m
axim
um
adm
inis
trative fin
es
of
at
least
EU
R 5
000 0
00,
or
in t
he M
em
ber
Sta
tes w
hose
curr
ency is
not th
e e
uro
, th
e c
orr
espondin
g v
alu
e in the n
ational
curr
ency o
n 2
July
2014;
(h)
maxim
um
adm
inis
trative fin
es o
f at le
ast tw
ice the a
mount of
the b
enefit derived fro
m the infr
ing
em
ent w
here
that benefit can
be d
ete
rmin
ed,
even i
f th
at
exceeds t
he m
axim
um
am
ounts
in
poin
ts (
f) a
nd (
g).
QE
PO
and a
mendin
g a
rtic
le 3
(a)
of
the Q
EP
O.
Para
gra
ph 6
(4)(
b)
and (
c)
of
Schedule
3 insert
ing n
ew
art
icle
4(5
)(aa)
and (
7)(
aa)
in Q
EP
O
Ord
er.
Art
icle
70(7
) of
MIF
ID 2
M
em
ber
Sta
tes m
ay e
mpow
er
com
pete
nt
auth
orities t
o im
pose
types o
f sanction in a
dditio
n t
o t
hose r
efe
rred t
o in p
ara
gra
ph 6
or
to i
mpose f
ines e
xceedin
g t
he a
mounts
refe
rred t
o i
n p
oin
ts
(f),
(g
) and (
h)
of
para
gra
ph 6
.
HM
T
Art
icle
71(1
) of
MiF
ID I
I M
em
ber
Sta
tes s
hall
pro
vid
e t
hat
com
pete
nt
auth
orities p
ublis
h
any d
ecis
ion im
posin
g a
n a
dm
inis
trative s
anction o
r m
easure
for
infr
ing
em
ents
of R
eg
ula
tion (
EU
) N
o 6
00/2
014 o
r of th
e n
ational
pro
vis
ions a
dopte
d i
n t
he i
mple
menta
tion o
f th
is D
irective o
n
their o
ffic
ial
websites w
ithout
undue d
ela
y a
fter
the p
ers
on o
n
whom
th
e sanction w
as im
posed has been in
form
ed of
that
decis
ion. T
he p
ublic
ation s
hall
inclu
de a
t le
ast in
form
ation o
n the
type and natu
re of
the in
frin
gem
ent
and th
e id
entity
of
the
Para
gra
phs 1
0 a
nd 2
2 o
f S
chedule
1
Para
gra
ph 4
6 o
f S
chedule
2
insert
ing a
new
section 3
91D
into
F
SM
A
HM
T
59
AR
TIC
LE
T
EX
T
TR
AN
SP
OS
ITIO
N I
N F
INA
NC
IAL
S
ER
VIC
ES
AN
D M
AR
KE
TS
AC
T
2000 (
MA
RK
ET
S I
N F
INA
NC
IAL
IN
ST
RU
ME
NT
S)
RE
GU
LA
TIO
NS
2017
RE
SP
ON
SIB
LE
B
OD
Y
pers
ons r
esponsib
le. T
hat oblig
ation d
oes n
ot apply
to d
ecis
ions
imposin
g m
easure
s t
hat are
of
an investig
ato
ry n
atu
re.
How
ever,
w
here
th
e
public
ation
of
the
identity
of
the
leg
al
pers
ons
or
of
the
pers
onal
data
of
the
natu
ral
pers
ons
is
consid
ere
d b
y t
he c
om
pete
nt
auth
ority
to b
e d
ispro
port
ionate
fo
llow
ing
a
case-b
y-c
ase
assessm
ent
conducte
d
on
the
pro
port
ionalit
y
of
the
public
ation
of
such
data
, or
where
public
ation je
opard
ises the s
tabili
ty o
f financia
l mark
ets
or an o
n-
goin
g in
vestig
ation, M
em
ber
Sta
tes s
hall
ensure
that com
pete
nt
auth
orities s
hall
either:
(a
) defe
r th
e p
ublic
ation o
f th
e d
ecis
ion t
o im
pose t
he s
anction
or
measure
until
the m
om
ent
where
the r
easons f
or
non-
public
ation c
ease to e
xis
t;
(b)
publis
h t
he d
ecis
ion t
o i
mpose t
he s
anction o
r m
easure
on
an
anonym
ous
basis
in
a
manner
whic
h
com
plie
s
with
national
law
, if such anonym
ous public
ation ensure
s an
eff
ective p
rote
ction o
f th
e p
ers
onal data
concern
ed;
(c)
not
publis
h t
he d
ecis
ion to im
pose a
sanction o
r m
easure
at
all
in t
he e
vent
that
the o
ptions s
et
out
in p
oin
ts (
a)
and (
b)
are
consid
ere
d to b
e insuff
icie
nt to
ensure
:
(i)
that
the s
tabili
ty o
f financia
l m
ark
ets
would
not
be p
ut
in
jeopard
y;
(ii) th
e p
roport
ionalit
y o
f th
e p
ublic
ation o
f such d
ecis
ions
with r
eg
ard
to m
easure
s w
hic
h a
re d
eem
ed t
o b
e o
f a
min
or
natu
re.
In
the c
ase o
f a d
ecis
ion to p
ublis
h a
sanction o
r m
easure
on a
n
anonym
ous b
asis
, th
e p
ublic
ation o
f th
e r
ele
vant
data
may b
e
postp
oned f
or
a r
easonable
period o
f tim
e if
it is e
nvis
ag
ed t
hat
60
AR
TIC
LE
T
EX
T
TR
AN
SP
OS
ITIO
N I
N F
INA
NC
IAL
S
ER
VIC
ES
AN
D M
AR
KE
TS
AC
T
2000 (
MA
RK
ET
S I
N F
INA
NC
IAL
IN
ST
RU
ME
NT
S)
RE
GU
LA
TIO
NS
2017
RE
SP
ON
SIB
LE
B
OD
Y
within
that
period t
he r
easons f
or
anonym
ous p
ublic
ation s
hall
cease t
o e
xis
t.
Art
icle
71(2
) of
MiF
ID I
I W
here
the d
ecis
ion t
o im
pose a
sanction o
r m
easure
is s
ubje
ct
to
appeal
befo
re
the
rele
vant
judic
ial
or
oth
er
auth
orities,
com
pete
nt
auth
orities s
hall
als
o p
ublis
h,
imm
edia
tely
, on t
heir
off
icia
l w
ebsite
such
info
rmation
and
any
subseq
uent
info
rmation on th
e outc
om
e of
such appeal. M
ore
over,
any
decis
ion a
nnulli
ng
a p
revio
us d
ecis
ion to im
pose a
sanction o
r a
measure
shall
als
o b
e p
ublis
hed.
Para
gra
ph 2
2 o
f S
chedule
1
Para
gra
ph 4
6 o
f S
chedule
2
insert
ing a
new
section 3
91D
into
F
SM
A
HM
T
Art
icle
71(4
) of
MiF
ID I
I M
em
ber
Sta
tes s
hall
pro
vid
e E
SM
A a
nnually
with a
ggre
gate
d
info
rmation r
eg
ard
ing a
ll sanctions a
nd m
easure
s i
mposed i
n
accord
ance w
ith p
ara
gra
phs 1
and 2
. T
hat
oblig
ation d
oes n
ot
apply
to
m
easure
s
of
an
investig
ato
ry
natu
re.
ES
MA
shall
publis
h t
hat in
form
ation in a
n a
nnual re
port
.
Reg
ula
tion 4
5 (
in r
ela
tion t
o t
he
underlin
ed t
ext)
H
MT
Art
icle
71(5
) of
MiF
ID I
I W
here
the c
om
pete
nt
auth
ority
has d
isclo
sed a
n a
dm
inis
trative
m
easure
, sanction o
r crim
inal sanction t
o t
he p
ublic
, it s
hall,
at
the s
am
e tim
e, re
port
that fa
ct to
ES
MA
.
Para
gra
ph 2
2 o
f S
chedule
1
Para
gra
ph 4
6 o
f S
chedule
2
insert
ing a
new
section 3
91D
into
F
SM
A
HM
T
Art
icle
73(2
) of
MiF
ID I
I M
em
ber S
tate
s s
hall
require in
vestm
ent f
irm
s, m
ark
et opera
tors
, data
report
ing
serv
ices p
rovid
ers
, cre
dit in
stitu
tions in
rela
tion to
investm
ent
serv
ices or
activitie
s and ancill
ary
serv
ices,
and
bra
nches of
third-c
ountr
y firm
s to
have in
pla
ce appro
priate
pro
cedure
s fo
r th
eir em
plo
yees to
re
port
pote
ntial
or
actu
al
infr
ing
em
ents
in
tern
ally
th
roug
h a specific
, in
dependent
and
auto
nom
ous c
hannel.
Para
gra
ph 1
(14)
of
Schedule
3
am
endin
g p
ara
gra
ph 9
of th
e R
RR
(S
)
HM
T
Art
icle
74(1
) of
MiF
ID I
I M
em
ber
Sta
tes s
hall
ensure
that
any d
ecis
ion t
aken u
nder
the
pro
vis
ions
of
Reg
ula
tion
(EU
) N
o
600/2
014
or
under
law
s,
reg
ula
tions o
r adm
inis
trative p
rovis
ions a
dopte
d in a
ccord
ance
with this
Directive is
pro
perly r
easoned a
nd is
subje
ct to
the r
ight
Para
gra
phs 1
2, 13, 18, 21 a
nd 2
2
of
Schedule
1
HM
T
61
AR
TIC
LE
T
EX
T
TR
AN
SP
OS
ITIO
N I
N F
INA
NC
IAL
S
ER
VIC
ES
AN
D M
AR
KE
TS
AC
T
2000 (
MA
RK
ET
S I
N F
INA
NC
IAL
IN
ST
RU
ME
NT
S)
RE
GU
LA
TIO
NS
2017
RE
SP
ON
SIB
LE
B
OD
Y
of
appeal befo
re a
tribunal. T
he r
ight of
appeal befo
re a
tribunal
shall
als
o
apply
w
here
, in
re
spect
of
an
applic
ation
for
auth
orisation w
hic
h pro
vid
es all
the in
form
ation re
quired,
no
decis
ion is t
aken w
ithin
six
month
s o
f its s
ubm
issio
n.
Art
icle
76(1
) of
MiF
ID I
I M
em
ber
Sta
tes
shall
ensure
th
at
com
pete
nt
auth
orities,
all
pers
ons
who
work
or
who
ha
ve
work
ed
for
the
com
pete
nt
auth
orities o
r entities t
o w
hom
tasks a
re d
ele
gate
d p
urs
uant
to
Art
icle
67(2
), a
s w
ell
as a
uditors
and e
xpert
s i
nstr
ucte
d b
y t
he
com
pete
nt
auth
orities,
are
bound
by
the
oblig
ation
of
pro
fessio
nal
secre
cy.
They shall
not
div
ulg
e any confidential
info
rmation w
hic
h they m
ay r
eceiv
e in the c
ours
e o
f th
eir d
uties,
save
in
sum
mary
or
aggre
gate
fo
rm
such
that
indiv
idua
l in
vestm
ent
firm
s,
mark
et
opera
tors
, re
gula
ted m
ark
ets
or
any
oth
er
pers
on
cannot
be
identified,
without
pre
judic
e
to
req
uirem
ents
of
national
crim
inal
or
taxation l
aw
or
the o
ther
pro
vis
ions o
f th
is D
irective o
r of
Reg
ula
tion (
EU
) N
o 6
00/2
014.
Para
gra
phs 2
0 a
nd 2
8 o
f S
chedule
1
HM
T
Art
icle
77(1
) and (
2)
of
MiF
ID I
I
1.
Mem
ber
Sta
tes
shall
pro
vid
e,
at
least,
that
any
pers
on
auth
orised w
ithin
the m
eanin
g o
f D
irective 2
006/4
3/E
C o
f th
e
Euro
pean P
arlia
ment
and o
f th
e C
ouncil
( 1 )
, perf
orm
ing in a
n
investm
ent firm
, a r
eg
ula
ted m
ark
et or
a d
ata
report
ing
serv
ices
pro
vid
er
the task d
escribed in
Art
icle
34 o
f D
irective 2
013/3
4/E
U
or
Art
icle
73
of
Directive
2009/6
5/E
C
or
any
oth
er
task
pre
scribed b
y l
aw
, shall
have a
duty
to r
eport
pro
mptly t
o t
he
com
pete
nt
auth
orities
any
fact
or
decis
ion
concern
ing
that
undert
akin
g
of
whic
h
that
pers
on
has
becom
e
aw
are
w
hile
carr
yin
g o
ut th
at ta
sk a
nd w
hic
h is lia
ble
to:
(a)
constitu
te a
mate
rial in
frin
gem
ent
of
the law
s,
reg
ula
tions o
r adm
inis
trative
pro
vis
ion
s
whic
h
lay
do
wn
the
conditio
ns
govern
ing a
uth
orisation o
r w
hic
h s
pecific
ally
govern
purs
uit o
f th
e a
ctivitie
s o
f in
vestm
ent firm
s;
Para
gra
ph 2
9 o
f S
chedule
1
HM
T
62
AR
TIC
LE
T
EX
T
TR
AN
SP
OS
ITIO
N I
N F
INA
NC
IAL
S
ER
VIC
ES
AN
D M
AR
KE
TS
AC
T
2000 (
MA
RK
ET
S I
N F
INA
NC
IAL
IN
ST
RU
ME
NT
S)
RE
GU
LA
TIO
NS
2017
RE
SP
ON
SIB
LE
B
OD
Y
(b)
aff
ect th
e c
ontinuous functionin
g o
f th
e investm
ent firm
; (c
) le
ad t
o r
efu
sal to
cert
ify t
he a
ccounts
or
to t
he e
xpre
ssio
n o
f re
serv
ations.
That
pers
on shall
als
o have a duty
to
re
port
any fa
cts
and
decis
ions o
f w
hic
h t
he p
ers
on b
ecom
es a
ware
in t
he c
ours
e o
f carr
yin
g o
ut one o
f th
e tasks r
efe
rred to in
the first subpara
gra
ph
in a
n u
ndert
akin
g h
avin
g c
lose l
inks w
ith t
he i
nvestm
ent
firm
w
ithin
whic
h h
e is c
arr
yin
g o
ut th
at ta
sk.
2.
The d
isclo
sure
in g
ood f
aith t
o t
he c
om
pete
nt
auth
orities,
by
pers
ons a
uth
orised w
ithin
the m
eanin
g o
f D
irective 2
006/4
3/E
C,
of
any fa
ct
or
decis
ion re
ferr
ed to
in
para
gra
ph 1 shall
not
constitu
te a bre
ach of
any contr
actu
al
or
leg
al
restr
iction on
dis
clo
sure
of
info
rmation a
nd s
hall
not
involv
e s
uch p
ers
ons i
n
liabili
ty o
f any k
ind.
Art
icle
79(1
) (p
art
) and (
3)
of
MiF
ID I
I
Com
pete
nt
auth
orities
of
diffe
rent
Mem
ber
Sta
tes
shall
coopera
te w
ith e
ach o
ther
where
necessary
for
the p
urp
ose o
f carr
yin
g o
ut th
eir d
uties u
nder
this
Directive o
r under
Reg
ula
tion
(EU
) N
o 6
00/2
014,
makin
g u
se o
f th
eir p
ow
ers
wheth
er
set
out
in this
Directive o
r in
Regula
tion (
EU
) N
o 6
00/2
014 o
r in
national
law
. W
here
Mem
ber
Sta
tes h
ave c
hosen,
in a
ccord
ance w
ith A
rtic
le
70,
to
lay
dow
n
crim
inal
sanctions fo
r in
frin
gem
ents
of
the
pro
vis
ions re
ferr
ed to
in
th
at
Art
icle
, th
ey shall
ensure
th
at
appro
priate
measure
s a
re in
pla
ce s
o that com
pete
nt auth
orities
have a
ll th
e n
ecessary
pow
ers
to l
iais
e w
ith j
udic
ial
auth
orities
within
their jurisdic
tion t
o r
eceiv
e s
pecific
info
rmation r
ela
ting t
o
crim
inal in
vestig
ations o
r pro
ceedin
gs c
om
menced f
or
possib
le
Para
gra
ph 6
and 1
9 o
f S
chedule
1
HM
T
63
AR
TIC
LE
T
EX
T
TR
AN
SP
OS
ITIO
N I
N F
INA
NC
IAL
S
ER
VIC
ES
AN
D M
AR
KE
TS
AC
T
2000 (
MA
RK
ET
S I
N F
INA
NC
IAL
IN
ST
RU
ME
NT
S)
RE
GU
LA
TIO
NS
2017
RE
SP
ON
SIB
LE
B
OD
Y
infr
ing
em
ents
of
this
D
irective
and
of
Reg
ula
tion
(EU
) N
o
600/2
014 a
nd p
rovid
e t
he s
am
e t
o o
ther
com
pete
nt
auth
orities
and E
SM
A t
o f
ulfil
their o
blig
ation t
o c
oopera
te w
ith e
ach o
ther
and E
SM
A f
or
the p
urp
oses o
f th
is D
irective a
nd o
f R
eg
ula
tion
(EU
) N
o 6
00/2
014.
Com
pete
nt
auth
orities shall
render
assis
tance to
com
pete
nt
auth
orities o
f th
e o
ther
Mem
ber
Sta
tes.
In p
art
icula
r, t
hey s
hall
exchang
e in
form
ation and coopera
te in
any in
vestig
ation or
superv
isory
activitie
s.
…
3.
Mem
ber
Sta
tes s
hall
take t
he n
ecessary
adm
inis
trative a
nd
org
anis
ational m
easure
s to facili
tate
the a
ssis
tance p
rovid
ed for
in p
ara
gra
ph 1
C
om
pete
nt
auth
orities m
ay u
se t
heir p
ow
ers
for
the p
urp
ose o
f coopera
tion,
even w
here
the c
onduct
under
investig
ation d
oes
not
constitu
te a
n i
nfr
ing
em
ent
of
any r
eg
ula
tion in f
orc
e i
n t
hat
Mem
ber
Sta
te.
Art
icle
80(1
) of
MiF
ID I
I A
com
pete
nt
auth
ority
of
one M
em
ber
Sta
te m
ay r
eq
uest
the
coopera
tion o
f th
e c
om
pete
nt auth
ority
of anoth
er M
em
ber
Sta
te
in a
superv
isory
activity o
r fo
r an o
n-t
he-s
pot verification o
r in
an
investig
ation.
In t
he c
ase o
f in
vestm
ent
firm
s t
hat
are
rem
ote
m
em
bers
or
part
icip
ants
of
a r
eg
ula
ted m
ark
et
the c
om
pete
nt
auth
ority
of
the r
eg
ula
ted m
ark
et
may c
hoose t
o a
ddre
ss t
hem
directly,
in w
hic
h c
ase it
shall
info
rm t
he c
om
pete
nt
auth
ority
of
the h
om
e M
em
ber
Sta
te o
f th
e r
em
ote
mem
ber
or
part
icip
ant
accord
ing
ly.
Para
gra
ph 1
9 o
f S
chedule
1
HM
T
64
AR
TIC
LE
T
EX
T
TR
AN
SP
OS
ITIO
N I
N F
INA
NC
IAL
S
ER
VIC
ES
AN
D M
AR
KE
TS
AC
T
2000 (
MA
RK
ET
S I
N F
INA
NC
IAL
IN
ST
RU
ME
NT
S)
RE
GU
LA
TIO
NS
2017
RE
SP
ON
SIB
LE
B
OD
Y
Where
a c
om
pete
nt auth
ority
receiv
es a
req
uest w
ith r
espect to
an o
n-
the-s
pot verification o
r an in
vestig
ation, it s
hall,
within
the
fram
ew
ork
of
its p
ow
ers
: (a
) carr
y o
ut th
e v
erifications o
r in
vestig
ations its
elf;
(b)
allo
w t
he r
eq
uesting a
uth
ority
to c
arr
y o
ut
the v
erification o
r in
vestig
ation;
(c)
allo
w auditors
or
expert
s to
carr
y out
the verification or
investig
ation.
Art
icle
84(1
) of
MiF
ID I
I T
he c
om
pete
nt
auth
orities o
f th
e o
ther
Mem
ber
Sta
te i
nvolv
ed
shall
be
consulted
prior
to
gra
nting
auth
orisation
to
an
investm
ent firm
whic
h is a
ny o
f th
e f
ollo
win
g:
(a)
a s
ubsid
iary
of
an i
nvestm
ent
firm
or
mark
et
opera
tor
or
cre
dit institu
tion a
uth
orised in a
noth
er
Mem
ber
Sta
te;
(b)
a s
ubsid
iary
of
the p
are
nt
undert
akin
g o
f an investm
ent
firm
or
cre
dit institu
tion a
uth
orised in a
noth
er
Mem
ber
Sta
te;
(c)
contr
olle
d b
y t
he s
am
e n
atu
ral or
leg
al pers
ons w
ho c
ontr
ol
an investm
ent
firm
or
cre
dit institu
tion a
uth
orised in a
noth
er
Mem
ber
Sta
te.
Para
gra
ph 5
of
Schedule
2
am
endin
g s
ection 5
5R
of F
SM
A
HM
T
Art
icle
84(2
) of
MiF
ID I
I T
he c
om
pete
nt
auth
ority
of
the M
em
ber
Sta
te r
esponsib
le f
or
the s
uperv
isio
n o
f cre
dit i
nstitu
tions o
r in
sura
nce u
ndert
akin
gs
shall
be
consulted
prior
to
gra
nting
an
auth
orisation
to
an
investm
ent firm
or
mark
et opera
tor
whic
h is
any o
f th
e follo
win
g:
(a)
a s
ubsid
iary
of
a c
redit i
nstitu
tion o
r in
sura
nce u
ndert
akin
g
auth
orised in t
he U
nio
n;
(b)
a s
ubsid
iary
of
the p
are
nt
undert
akin
g o
f a c
redit institu
tion
or
insura
nce u
ndert
akin
g a
uth
orised in the U
nio
n;
(c)
contr
olle
d b
y the s
am
e p
ers
on, w
heth
er
natu
ral o
r le
gal, w
ho
contr
ols
a
cre
dit
institu
tion
or
insura
nce
undert
akin
g
auth
orised in t
he U
nio
n.
Para
gra
phs 5
and 3
0 o
f S
chedule
2
am
endin
g s
ection 5
5R
of F
SM
A
and r
epealin
g s
ection 4
12A
and
412B
of
FS
MA
HM
T
65
AR
TIC
LE
T
EX
T
TR
AN
SP
OS
ITIO
N I
N F
INA
NC
IAL
S
ER
VIC
ES
AN
D M
AR
KE
TS
AC
T
2000 (
MA
RK
ET
S I
N F
INA
NC
IAL
IN
ST
RU
ME
NT
S)
RE
GU
LA
TIO
NS
2017
RE
SP
ON
SIB
LE
B
OD
Y
Annex 2
–S
ection 2
.2
of
MiF
ID I
I
II.2
Pro
cedure
…
. H
ow
ever,
if
clie
nts
have
already
been
ca
teg
orised
as
pro
fessio
nals
under
para
mete
rs a
nd p
rocedure
s s
imila
r to
those
refe
rred t
o a
bove,
it is n
ot
inte
nded t
hat
their r
ela
tionship
s w
ith
in
vestm
ent
firm
s s
hall
be a
ffecte
d b
y a
ny n
ew
rule
s a
dopte
d
purs
uant to
this
Annex.
[the f
ull
text
is n
ot
repro
duced h
ere
and o
ther
part
s o
f S
ection
2.2
may b
e r
ele
vant]
Para
gra
ph 6
of
Schedule
2
am
endin
g s
ection 8
6 o
f F
SM
A
HM
T
