On 16 and 18 January 2008 the European Commission updated the questions and answers to its ‘Your questions on MiFID’ database. Among the new questions and answers were:

  • Whether MTFs include ATS and ECN (question 178). In the response the Commission states that these terms are generally synonymous although in each case the legal definition of ‘MTF’ must be applied. The list of MTFs is published by CESR and can be found at http://mifiddatabase.cesr.eu/.
  • Transaction reporting and obligations relating to delegated executions (question 187). In the response the Commission states that where the investment firm is executing transactions involving instruments covered by MiFID it is obliged to report the transaction to the relevant authority. However, if the investment firm is only receiving and transmitting orders the treatment will be as stated in the CESR level 3 guidelines on MiFID transaction reporting.
  • Market transparency requirements and trading hours (question 156). The Commission states that the situation where a broker is given instructions that are acted on outside normal trading hours is contemplated in MiFID and refers to Article 29(5)(b) MiFID implementing Regulation. According to Article 21(3) MiFID, investment firms shall obtain the prior express consent of their clients before proceeding to execute orders outside a regulated market or an MTF. Investment firms can obtain this consent either by general agreement or in respect of individual trades. The Commission states that there is nothing in MiFID to prevent a customer instructing a broker to execute an order until anytime.

View Commission updates ‘Your questions on MiFID’ database, January 2008