2PRIN 3.1.6 R gives effect to the provisions of the EUWA concerning the continuing application of the principle of the supremacy of EU law. It7 ensures that the Principles and PRIN 2A8 do not impose obligations upon firms which are inconsistent with a relevant7 EU 5 measure7. If a Principle 6or PRIN 2A8 does purport to impose such an obligation PRIN 3.1.6 R disapplies that Principle or provision of PRIN 2A,8 but only to the extent necessary to ensure compatibility with the relevant EU measure7. This disapplication has practical effect only for certain matters covered by MiFID, which are explained in this section.5454
transactions concluded under the rules governing a multilateral trading facility between its members or participants or between the multilateral trading facility and its members or participants in relation to the use of the multilateral trading facility;
transactions concluded on a regulated market between its members or participants.
Under PRIN 3.1.6 R, these disapplications may affect Principles 1, 2, 6, 9, 12 and PRIN 2A8. PRIN 3.1.6 R applies only to the extent that the application of a Principle or PRIN 2A8 would be contrary to the UK's obligations under a relevant EU measure7 in respect of a particular transaction or matter. In line with MiFID, these limitations relating to eligible counterparty business and transactions under the rules of a multilateral trading facility or on a regulated market only apply in relation to a firm's conduct of business obligations to its clients derived from7 MiFID. They do not limit the application of those Principles or PRIN 2A8 in relation to other matters, such as client asset protections, systems and controls, prudential requirements and market integrity. Further information about these limitations is contained in 1 COBS 1 Annex 1.1
Principles 3, 4, 5, 7, 8, 10 and 11 are not limited in this way.