MAR 6.14 Limiting risk of exposure to multiple transactions
A systematic internaliser may limit the number of transactions from the same client that it undertakes to enter at the published quote, provided it does so in a non-discriminatory way within the categories of retail and professional clients.
[Note: Recital 50 and Article 27(6) of MiFID]
A systematic internaliser may limit the total number of transactions from different clients at the same time that it undertakes to enter at the published quote, provided that it does so:
- (1)
in a non-discriminatory way within the categories of retail and professional clients;
- (2)
in accordance with the provisions of the client order handling rules set out in
1COBS 11.3, COBS 11.4.1 R and COBS 11.4.5 R1; and
- (3)
that the number or volume of orders sought by clients considerably exceeds the norm.
[Note: Recital 50 and Article 27(6) of MiFID]
2. |
For the purposes of Article 27(6) of [the MiFID] Directive 2004/39/EC, the number or volume of orders shall be regarded as considerably exceeding the norm if a systematic internaliser cannot execute those orders without exposing itself to undue risk. |
In order to identify the number and volume of orders that it can execute without exposing itself to undue risk, a systematic internaliser shall maintain and implement as part of its risk management policy under Article 7 of Commission Directive 2006/73/EC [the MiFID implementing Directive] a non-discriminatory policy which takes into account the volume of the transactions, the capital that the firm has available to cover the risk for that type of trade, and the prevailing conditions in the market in which the firm is operating. |
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3. |
Where, in accordance with Article 27(6) of [the MiFID] Directive 2004/39/EC, an investment firm limits the number or volume of orders it undertakes to execute, it shall set out in writing, and make available to clients and potential clients, the arrangements designed to ensure that such a limitation does not result in the discriminatory treatment of clients. |
[Note: Article 25(2) and (3) of the MiFID Regulation] |