Status: Please note you should read all Brexit changes to the FCA Handbook and BTS alongside the main FCA transitional directions. Where these directions apply the 'standstill', firms have the choice between complying with the pre-IP completion day rules, or the post-IP completion day rules. To see a full list of Handbook modules affected, please see Annex B to the main FCA transitional directions.

Article 4 Transmission of an order

  1. (1)

    An investment firm transmitting an order pursuant to Article 26(4) of Regulation (EU) No 600/2014 (transmitting firm) shall be deemed to have transmitted that order only if the following conditions are met:

    1. (a)

      the order was received from its client or results from its decision to acquire or dispose of a specific financial instrument in accordance with a discretionary mandate provided to it by one or more clients;

    2. (b)

      the transmitting firm has transmitted the order details referred to in paragraph 2 to another investment firm (receiving firm);

    3. (c)

      the receiving firm is a MiFID investment firm and is subject to Article 26(1) of Regulation (EU) No 600/2014 and agrees either to report the transaction resulting from the order concerned or to transmit the order details in accordance with this Article to another MiFID investment firm.

    For the purposes of point (c) of the first subparagraph the agreement shall specify the time limit for the provision of the order details by the transmitting firm to the receiving firm and provide that the receiving firm shall verify whether the order details received contain obvious errors or omissions before submitting a transaction report or transmitting the order in accordance with this Article.

  2. (2)

    The following order details shall be transmitted in accordance with paragraph 1, insofar as pertinent to a given order:

    1. (a)

      the identification code of the financial instrument;

    2. (b)

      whether the order is for the acquisition or disposal of the financial instrument;

    3. (c)

      the price and quantity indicated in the order;

    4. (d)

      the designation and details of the client of the transmitting firm for the purposes of the order;

    5. (e)

      the designation and details of the decision maker for the client where the investment decision is made under a power of representation;

    6. (f)

      a designation to identify a short sale;

    7. (g)

      a designation to identify a person or algorithm responsible for the investment decision within the transmitting firm;

    8. (h)

      country of the branch of the investment firm supervising the person responsible for the investment decision and country of the investment firm's branch that received the order from the client or made an investment decision for a client in accordance with a discretionary mandate given to it by the client;

    9. (i)

      for an order in commodity derivatives, an indication whether the transaction is to reduce risk in an objectively measurable way in accordance with regulation 17 of the Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2017;

    10. (j)

      the code identifying the transmitting firm.

    For the purposes of point (d) of the first subparagraph, where the client is a natural person, the client shall be designated in accordance with Article 6.

    For the purposes of point (j) of the first subparagraph, where the order transmitted was received from a prior firm that did not transmit the order in accordance with the conditions set out in this Article, the code shall be the code identifying the transmitting firm. Where the order transmitted was received from a prior transmitting firm in accordance with the conditions set out in this Article, the code provided pursuant to point (j) referred to in the first subparagraph shall be the code identifying the prior transmitting firm.

  3. (3)

    Where there is more than one transmitting firm in relation to a given order, the order details referred to in points (d) to (i) of the first subparagraph of paragraph 2 shall be transmitted in respect of the client of the first transmitting firm.

  4. (4)

    Where the order is aggregated for several clients, information referred to in paragraph 2 shall be transmitted for each client.